--- title: Accidents Will Happen description: Accidents Will Happen image: https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_pp_png_category.png --- [![logo](https://www.dwc401k.com/hubfs/_global/logo.svg "logo")](https://www.dwc401k.com/) [![logo](https://www.dwc401k.com/hubfs/Dwc-2019/SVG/logo.svg "logo")](https://www.dwc401k.com/) [![Contribution Limits](https://no-cache.hubspot.com/cta/default/3113501/af3ae025-72b1-41fa-8855-5e196d6c26e4.png)](https://cta-redirect.hubspot.com/cta/redirect/3113501/af3ae025-72b1-41fa-8855-5e196d6c26e4) [![Log in](https://no-cache.hubspot.com/cta/default/3113501/3466ce37-58ba-4a93-bddb-0d4c8bb8ccbc.png)](https://cta-redirect.hubspot.com/cta/redirect/3113501/3466ce37-58ba-4a93-bddb-0d4c8bb8ccbc) [![services-icon1](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon1.png) ## Plan Document A properly drafted document is the foundation of achieving the company's objectives and keeping the plan in operational compliance. ](https://www.dwc401k.com/services/plan-document) [![services-icon2](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon2.png) ## Plan Compliance We have a fundamental understanding of how critical plan compliance is to both the IRS and Department of Labor. ](https://www.dwc401k.com/services/plan-compliance) [![services-icon3](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon3.svg) ## Defined Benefits Services We work with business owners and investment advisors to determine what makes the most sense by providing a detailed cost benefit analysis. ](https://www.dwc401k.com/services/defined-benefits-services) [![services-icon4](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon4.svg) ## Mergers, Aquisitions & Related Company Analysis The DWC team is well-versed enough in the nuances and is ready to help you navigate the situation. ](https://www.dwc401k.com/services/mergers-acquisitions-analysis) [![services-icon5](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon5.png) ## Plan Corrections DWC's extensive experience with both the IRS and Department of Labor voluntary correction programs allows us to help you address just about any accident that might happen. ](https://www.dwc401k.com/plan-corrections) [![services-icon6](https://www.dwc401k.com/hubfs/QOTW/March%202020/services-icon6.png) ## Government Audits Being selected for an audit can feel overwhelming, but the process doesn't have to be. ](https://www.dwc401k.com/services/government-audits) ![service-right-icon](https://www.dwc401k.com/hubfs/QOTW/March%202020/service-right-icon.svg) ## Investment Advisor Support DWC has a long history of successfully partnering with investment advisors. We bring decades of experience, supported by the resources to deliver comprehensive solutions for your clients. Our consultants understand the importance of your relationships and will work seamlessly alongside your team. 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[![https://3113501.fs1.hubspotusercontent-na1.net/hubfs/3113501/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20without%20category%20name/hero_pp_png.png](https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20without%20category%20name/hero_pp_png.png) ](https://www.dwc401k.com/blog/the-new-era-of-401ks-evaluating-private-equity-for-retirement-portfolios) ### [The New Era of 401(k)s: Evaluating Private Equity for Retirement Portfolios](https://www.dwc401k.com/blog/the-new-era-of-401ks-evaluating-private-equity-for-retirement-portfolios) [![https://3113501.fs1.hubspotusercontent-na1.net/hubfs/3113501/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20without%20category%20name/hero_pp_png.png](https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20without%20category%20name/hero_pp_png.png) ](https://www.dwc401k.com/blog/why-the-simple-to-401k-transition-is-finally-simple) ### [Why the SIMPLE-to-401(k) Transition Is Finally… Simple](https://www.dwc401k.com/blog/why-the-simple-to-401k-transition-is-finally-simple) [![https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/SVG%20-%20with%20category%20name/hero_pp_category.svg](https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/SVG%20-%20with%20category%20name/hero_pp_category.svg) ](https://www.dwc401k.com/blog/decoding-the-alphabet-soup-whats-with-all-the-acronyms-part-6) ### [Decoding the Alphabet Soup: What’s With All the Acronyms | Part 6](https://www.dwc401k.com/blog/decoding-the-alphabet-soup-whats-with-all-the-acronyms-part-6) [![https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/SVG%20-%20with%20category%20name/hero_pp_category.svg](https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/SVG%20-%20with%20category%20name/hero_pp_category.svg) ](https://www.dwc401k.com/blog/decoding-the-alphabet-soup-whats-with-all-the-acronyms-part-5) ### [Decoding the Alphabet Soup: What’s With All the Acronyms | Part 5](https://www.dwc401k.com/blog/decoding-the-alphabet-soup-whats-with-all-the-acronyms-part-5) [![https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/SVG%20-%20with%20category%20name/hero_pp_category.svg](https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/SVG%20-%20with%20category%20name/hero_pp_category.svg) ](https://www.dwc401k.com/blog/decoding-the-alphabet-soup-whats-with-all-the-acronyms-part-4) ### [Decoding the Alphabet Soup: What’s With All the Acronyms | Part 4](https://www.dwc401k.com/blog/decoding-the-alphabet-soup-whats-with-all-the-acronyms-part-4) [![https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_rr_png_category.png](https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_rr_png_category.png) ](https://www.dwc401k.com/blog/in-case-of-emergency-dont-break-plan) ### [In Case of Emergency, (Don't) Break Plan!](https://www.dwc401k.com/blog/in-case-of-emergency-dont-break-plan) [![See all](https://no-cache.hubspot.com/cta/default/3113501/da389b32-e8ba-4681-ac07-738df4376a5b.png)](https://cta-redirect.hubspot.com/cta/redirect/3113501/da389b32-e8ba-4681-ac07-738df4376a5b) [!["Complete Control" with Recommended Contributions](https://www.dwc401k.com/hs-fs/hubfs/Blog/Cash%20Balance%20Corner/September%202020/CBC%20-%209.3.2020%20-%20Complete%20Control%20with%20Recommended%20Contributions_Retirement%20Plan%20Design.png?width=800&height=350&name=CBC%20-%209.3.2020%20-%20Complete%20Control%20with%20Recommended%20Contributions_Retirement%20Plan%20Design.png) ](https://www.dwc401k.com/blog/calculating-recommended-contributions-cash-balance-corner) ### ["Complete Control" with Recommended Contributions](https://www.dwc401k.com/blog/calculating-recommended-contributions-cash-balance-corner) [![“Cover Me” with the Pension Benefit Guaranty Corporation](https://www.dwc401k.com/hs-fs/hubfs/CBC-8.19-PBGC.png?width=800&height=350&name=CBC-8.19-PBGC.png) ](https://www.dwc401k.com/blog/cover-me-with-pbgc) ### [“Cover Me” with the Pension Benefit Guaranty Corporation](https://www.dwc401k.com/blog/cover-me-with-pbgc) [![10-Retirement-Compliance-Failures](https://www.dwc401k.com/hs-fs/hubfs/Blog/Blog%20Collateral%20-%20Old%20Designs/Blog%20Header%20Images_Old%20Watermarked%20Design/10-Retirement-Compliance-Failures.png?width=800&height=350&name=10-Retirement-Compliance-Failures.png) ](https://www.dwc401k.com/blog/10-common-retirement-plan-compliance-failures-found-by-the-irs) ### [10 Common Retirement Plan Compliance Failures Found by the IRS](https://www.dwc401k.com/blog/10-common-retirement-plan-compliance-failures-found-by-the-irs) [![2020 DOL Enforcement Stats: Is the Glass Half Full or Half Empty?](https://www.dwc401k.com/hs-fs/hubfs/Blog/Question%20of%20the%20Week/3.4.2021%20DOL%20Enforcement%20Blog.png?width=800&height=350&name=3.4.2021%20DOL%20Enforcement%20Blog.png) ](https://www.dwc401k.com/blog/2020-dol-enforcement-statistics) ### [2020 DOL Enforcement Stats: Is the Glass Half Full or Half Empty?](https://www.dwc401k.com/blog/2020-dol-enforcement-statistics) [![2020 Retirement Plan Tax Deductions - It's Not Too Late](https://www.dwc401k.com/hs-fs/hubfs/Blog%20-%204.15.2021%20-%202020%20Retirement%20Plan%20Deductions.png?width=800&height=350&name=Blog%20-%204.15.2021%20-%202020%20Retirement%20Plan%20Deductions.png) ](https://www.dwc401k.com/blog/2020-retirement-plan-deductions-not-too-late) ### [2020 Retirement Plan Tax Deductions - It's Not Too Late](https://www.dwc401k.com/blog/2020-retirement-plan-deductions-not-too-late) [![QOTW - 5.8.2018 - 401k Distribution Rules - After Taking a Hardship Distribution How Quickly Must a Participant Stop 401k Contributions - 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Relief](https://www.dwc401k.com/hubfs/Blog/Mega%20Nav%20Featured%20Blog%20Image.png) ](https://www.dwc401k.com/blog/cares-act-federal-coronavirus-relief-dwc-news-update) ## [ The CARES Act: Federal Coronavirus Relief ](https://www.dwc401k.com/blog/cares-act-federal-coronavirus-relief-dwc-news-update) [ Back to Knowledge Center ](https://www.dwc401k.com/blog) ![Accidents Will Happen](https://www.dwc401k.com/hs-fs/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_pp_png_category.png?width=800&name=hero_pp_png_category.png) # Accidents Will Happen [ Adam C. Pozek ](https://www.dwc401k.com/blog/author/adam-c-pozek) | Published: 02/24/2013 | [401(k) Plan](https://www.dwc401k.com/blog/topic/401k-plan), [403(b)](https://www.dwc401k.com/blog/topic/403b), [Defined Contribution](https://www.dwc401k.com/blog/topic/defined-contribution), [IRS](https://www.dwc401k.com/blog/topic/irs), [Qualified Plan](https://www.dwc401k.com/blog/topic/qualified-plan), [Retirement Plan](https://www.dwc401k.com/blog/topic/retirement-plan), [DWC](https://www.dwc401k.com/blog/topic/dwc), [Plan Correction](https://www.dwc401k.com/blog/topic/plan-correction), [Pension Primer](https://www.dwc401k.com/blog/topic/pension-primer) If you’ve spent any time working with retirement plans, you know how complicated they can be.  It seems like every rule has an exception and an exception to that exception.  It is no wonder that accidents occasionally happen - and [correction](https://www.dwc401k.com/plan-corrections) is required - despite everyone’s best efforts to follow the rules. Fortunately, the IRS also understands that accidents will happen, so they created a very useful program for plan sponsors to voluntarily correct those accidents and avoid the unpleasant experience of having oversights discovered during an audit.  The first version of the correction program appeared in 1998.  Now on its tenth incarnation, the IRS published the most recent update on December 31, 2012…and I was only tempted for a half second to spend my New Years Eve reading it. The Employee Plans Compliance Resolution System or EPCRS is comprised of three components – the Self Correction Program (“SCP”), the Voluntary Correction Program (“VCP”) and the Audit Closing Agreement Program (“Audit CAP”) – all of which are focused on putting the plan in the position it would have been had the error not occurred. While far from original, the names are fairly self-explanatory. SCP allows for the correction of operational mistakes (not following the terms of the plan document) that are recent and/or insignificant, without asking the IRS for approval.  For mistakes that are significant and happened more than 2 years ago, VCP provides a mechanism to confess and ask the IRS to approve the correction.  There is a user fee tied to the number of plan participants, but there are not any penalties beyond that. Generally speaking, once a sponsor receives notification of an impending audit, SCP and VCP are off the table.  Audit CAP describes the procedures for dealing with problems if the IRS finds them before the plan sponsor fixes them. Over the next few weeks, I will add a few follow-up posts to describe how to correct some of the more common errors that occur.  If you would like to ready more about EPCRS in the meantime, check out the Correcting Plan Errors page on the IRS website at [www.irs.gov/Retirement-Plans/Correcting-Plan-Errors](http://www.irs.gov/Retirement-Plans/Correcting-Plan-Errors). I have been invited to lead workshops on EPCRS in a few locations throughout the year.  If you are in the neighborhood and have an interest, I encourage you to attend and stop by to say hello. - April 4th – ASPPA Benefits Council of Atlanta (Atlanta, GA) - May 29th – ASPPA Benefits Council of Cleveland (Cleveland, OH) - August 10th – ABC of Central Texas (Austin, TX) - October 17th - ABC of the Great Northwest (Seattle, WA) - November 12th - ABC of Northern Indiana (Ft. Wayne, IN)     - Share - [**](https://www.facebook.com/sharer/sharer.php?u=https://www.dwc401k.com/blog/2013/02/24/accidents-will-happen&title=Accidents%20Will%20Happen&picture=https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_pp_png_category.png&description=Accidents%20Will%20Happen) - [**](https://twitter.com/share?url=https://www.dwc401k.com/blog/2013/02/24/accidents-will-happen&hashtags=) ## Browse categories [ DWC Developments ](https://www.dwc401k.com/blog/topic/dwc-developments) [ Industry Insights ](https://www.dwc401k.com/blog/topic/industry-insights) [ Regulatory Round-Up ](https://www.dwc401k.com/blog/topic/regulatory-round-up) [ Cash Balance Corner ](https://www.dwc401k.com/blog/topic/cash-balance-corner) [ 401(k) Q&A ](https://www.dwc401k.com/blog/topic/401k-qa) [ Operational Overview ](https://www.dwc401k.com/blog/topic/operational-overview) [ Lessons from Litigation ](https://www.dwc401k.com/blog/topic/lessons-from-litigation) [ Pension Primer ](https://www.dwc401k.com/blog/topic/pension-primer) [ Browse by Topic ](https://www.dwc401k.com/knowledge-center-topics) ## Subscribe to our newsletter ### Only the Best Retirement Industry Content Get our 401(k) and defined benefits content delivered directly to your inbox. 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