SECTION 2. EFFECT OF THIS

REVENUE PROCEDURE; RELIANCE

.01 Effect of this Revenue Procedure. If an Operational Failure addressed in this revenue procedure is corrected in the specific manner described in an applicable correction method set forth in this revenue procedure, the Service will treat the correction as a reasonable and appropriate correction for the Operational Failure under section 6.02(2) of Rev. Proc. 98–22. In addition, if an earnings adjustment is made to a corrective contribution or allocation under a defined contribution plan in a specific manner described in section 5 of this revenue procedure, the Service will treat the earnings adjustment as satisfying the requirement of section 6.02(3)(a) of Rev. Proc. 98–22 that corrective allocations in a defined contribution plan be adjusted for earnings.

.02 Revenue Procedure Not Applicable to 403(b) Plans. This revenue procedure does not apply to 403(b) plans. Accordingly, sponsors of 403(b) plans cannot rely on the correction methods under section 4 and the earnings adjustment methods under section 5. For guidance relating to 403(b) plans, see Rev. Proc. 99–13.

1999–34 I.R.B. 281 August 23, 1999

are satisfied; and the Operational Failure is corrected using an applicable correction method described in this revenue procedure that otherwise satisfies section 6.02 of Rev. Proc. 98–22, then, in accordance with section 3 of Rev. Proc. 98–22, the plan will not be disqualified by reason of the Operational Failure.

.04 Effect of Future Guidance. The Service expects that the correction methods and earnings adjustment methods described in this revenue procedure will be updated periodically in light of experience gained and comments received. However, taxpayers will be able to continue to rely on the correction methods and earnings adjustment methods in this revenue procedure for corrections prior to the publication of future guidance.