When a retirement plan is out of compliance with IRS rules, there are ways to correct it without incurring penalties. The Employee Plans Compliance Resolution System (EPCRS) stipulates that errors which are minor and inadvertent can be rectified without the supervision of the IRS.
Professional guidance is suggested, however, to ensure that the client’s retirement plan is brought into compliance before any penalties incur.
The EPCRS program is divided into three separate compliance systems: the self-correction program (SCP); the voluntary correction program (VCP); and the compliance audit program (CAP). Each one involves different scenarios and requires different steps to ensure compliance.
PSI offers support and consulting in all three areas of EPCRS. Our attorneys and accountants are well-versed in the nuances of corporate retirement plans, as well as the regulatory changes which are announced on a regular basis.
Regulatory updates may affect some of the following procedures:
- Forms and application schedules
- Amendments, and opinion or advisory letters for qualification
- Qualified, non-elective contributions
- Former employees and beneficiaries
- Matching contributions
- Safe harbor plans
- Plan documentation
- Cost-of-living adjustments for certain plan participants
At PSI, we make it our business to stay abreast of this ever-changing field. Our actuarial, legal, and accounting departments have the professional expertise and experience to transform a negative event into a positive for the client company. By working with the experts at PSI, an internal review may help transform potentially weak areas into strengths.
No matter what type of adjustment is required– whether it involves testing, operations, documentation, funding, accounting, or other– PSI has the resources to identify the problem and the solution. Because we are familiar with various types of retirement plans in a wide range of industries, our expertise is unparalleled in the field.
We recognize that the client’s main business is seldom if ever the pursuit and study of retirement planning/accounting/ law. At PSI, retirement planning is our forte. Our professional partners and their clients have come to depend on PSI for its depth. Our actuarial talent, accounting expertise, attorneys who specialize in retirement and pension law, and administrators with a deep background in corporate retirement are all geared towards that goal.
We approach each client as a case study– individual, unique, and deserving of customized problem-solving. You can depend on PSI to serve the client’s interests with the highest level of professionalism and judgment.