SECTION 1. PURPOSE AND — Internal Revenue Bulletin 2013-4

OVERVIEW

.01 Purpose . This revenue procedure updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of § 401(a), 403(a), 403(b), 408(k), or 408(p) of the Internal Revenue Code (the “Code”), but that have not met these requirements for a period of time. This system, the Employee Plans Compliance Resolution System (“EPCRS”), permits Plan Sponsors to correct these failures and thereby continue to provide their employees with retirement benefits on a tax-favored basis. The components of EPCRS are the Self-Correction Program (“SCP”), the Voluntary Correction Program (“VCP”), and the Audit Closing Agreement Program (“Audit CAP”).

.02 General principles underlying EPCRS . EPCRS is based on the following general principles:

• Sponsors and other administrators of eligible plans should be encouraged to establish ad¶

ministrative practices and procedures that ensure that these plans are operated properly in accordance with the applicable requirements of the Code.

Exceptions & meaning →

• Sponsors and other administrators of eligible plans should satisfy the applicable…¶

• Sponsors and other administrators should make voluntary and timely correction of any…¶

failures, whether involving discrimination in favor of highly compensated employees, plan operations, the terms of the plan document, or adoption of a plan by an ineligible employer. Timely and efficient correction protects participating employees by providing them with their expected retirement benefits, including favorable tax treatment.

January 22, 2013 316 2013–4 I.R.B.

Exceptions & meaning →