IRS Introduces Streamlined Systems to Fix Errors in Workplace Plans and IRAs

On Thursday the Internal Revenue Service and Treasury Department released Revenue Procedure 2026-34 and 2026-33, revamping how retirement-plan errors are remedied. The revised Employee Plans Compliance Resolution System broadens the Self-Correction, Voluntary Correction and Audit Closing Agreement programs for qualified plans, 403(b)s, SEPs and SIMPLE IRAs, incorporating provisions from the SECURE 2.0 Act. Simultaneously, the new IRA Compliance Resolution System mirrors the employer framework, allowing IRA custodians and owners to seek relief for failures such as missed required minimum distributions, beneficiary errors and 60-day rollover mishaps.

ICRS will become operational on May 1 2027, with a transition period for rollover waiver requests through 2028. IRS chief executive Frank J. Bisignano highlighted the goal of making tax law compliance less burdensome, while experts like Kevin Thompson and Alex Beene noted the potential benefit to millions of Americans. The Treasury is now seeking public comment on both programs.