The IRS did its part to make Friday, April 19th a really good Friday for those who sponsor qualified retirement plans. After not making many friends when it jacked up the user fees for the Voluntary Correction Program (VCP) a year or so ago, the IRS has responded to industry requests (that DWC representatives helped draft) by now allowing plan sponsors to self-correct a number of more common missteps without the need to submit anything to the IRS at all.
Topic Archive: EPCRS
People in the retirement plan business sure do like their acronyms. All these letters get thrown around, and I do not know what half of them mean.
In order to be eligible for our company’s 401(k) plan, employees must have worked for us for at least a year and be a minimum of 21 years old. They can join the plan on the next January 1st or July 1st following the date they meet those requirements. Recently, we discovered that we allowed an employee to start contributing to the plan before he met those requirements. He also received company matching contributions.