As discussed in an earlier blog post, the SECURE 2.0 Act of 2022 (the Act) expanded the Employee Plans Compliance Resolution System (EPCRS), a comprehensive IRS program for correcting common qualified retirement plan failures. Plan sponsors have three ways to correct mistakes under EPCRS: the self-correction program (SCP), the voluntary correction program (VCP), and the Audit Closing Agreement Program (Audit CAP).
The Act requires the IRS to update EPCRS consistent with the Act no later than December 29, 2024. On May 25, 2023, the IRS issued Notice 2023-43 to provide interim guidance on the expansion of EPCRS.
