SECTION 2. EFFECT OF THIS

REVENUE PROCEDURE ON PROGRAMS

.01 Effect on programs . This revenue procedure modifies and supersedes Rev. Proc. 2006–27, 2006–1 C.B. 945 (as modified by Rev. Proc. 2007–49, 2007–30 I.R.B. 141), which was the prior consolidated statement of the correction programs under EPCRS. The modifications to Rev. Proc. 2006–27 that are reflected in this revenue procedure include:

• Expanding the definition of a plan loan failure to include violations of § 72(p)(2), regardless of whether the plan contains language relating to § 72(p). (sections 4.01 and 6.07)

• Clarifying that in particular cases the Service may decline to make available one or more correction programs under EPCRS in the interest of sound tax administration. (section 4.01(5))

• Expanding the scope of the SCP by: (i) liberalizing the requirements for determining whether there was substantial completion of correction as of the first date the plan or Plan Sponsor is considered to be Under Examination and (ii) expanding the failures for which sample correction methods are provided. (sections 4.05(2) and 9.04, Appendix A .05, and Appendix B 2.02)

• Expanding the correction method with respect to elective deferrals to include catch-up contributions under § 414(v) and plans that provide the opportunity for an employee to designate all or a portion of elective deferrals as designated Roth contributions. (Appendix A .05, and Appendix B 2.02)