The Department of the Treasury and the Internal Revenue Service issued two retirement-account correction procedures on October 22, 2026. Revenue Procedure 2026-34 revises the employee-plan framework and took effect upon issuance. A companion procedure creates an IRA correction system that starts May 1, 2027.
The employee-plan update replaces and restructures Revenue Procedure 2021-30. The new IRA process will let custodians and account owners seek correction of certain eligible inadvertent failures tied to service-provider errors. It also creates a new route for some rollover-waiver requests.
IRS Chief Executive Officer Frank J. Bisignano said the procedures aim to make corrections simpler and faster.
“Hard working Americans will benefit from these procedures because they simplify and speed up how errors with certain retirement plans and IRAs can get corrected when there is a simple problem,” Bisignano said. “These procedures are part of our effort to make complying with the nation's tax laws easier and less burdensome for taxpayers”
The changes do not combine the two systems. One revises an existing set of options for plan sponsors; the other establishes a voluntary submission program for IRA custodians and owners.
The revised plan system and new IRA route serve different applicants
The Employee Plans Compliance Resolution System, or EPCRS, retains three correction programs. The new IRA Compliance Resolution System, or ICRS, begins with one.
| Who may use the route | Correction option | What it covers |
|---|---|---|
| Sponsors of eligible workplace and individual-based plans | Self-Correction Program, Voluntary Correction Program, or Audit Closing Agreement Program | Corrections involving qualified plans, section 403(b) plans, SEP arrangements, and SIMPLE IRA plans |
| IRA custodians or IRA owners | IRA Voluntary Correction Program | Certain eligible inadvertent failures caused by service-provider errors |
| Plan participants and IRA owners seeking rollover relief | Waiver request through the new IRA system | Requests concerning a missed 60-day rollover period |
The three EPCRS programs let sponsors correct failures while continuing to provide retirement benefits on a tax-favored basis. The system covers plans intended to meet Internal Revenue Code requirements under sections 401(a), 403(a), 403(b), 408(k), or 408(p).
That reach includes plans that have failed to satisfy those requirements for a period of time. Revenue Procedure 2026-34 also asks for feedback on using a Department of Labor online calculator to determine earnings in certain defined-contribution plan corrections.
The IRA program starts with a single voluntary submission option
At launch, ICRS consists only of the IRA Voluntary Correction Program, or IVCP. Its applicant is the IRA custodian or IRA owner making the submission, according to the procedure.
The process draws on the employee-plan correction model, but applies to the distinct legal forms used for individual retirement savings. Those include individual retirement accounts under IRC § 408(a), individual retirement annuities under IRC § 408(b), and Roth IRAs under IRC § 408A.
Congress provided the statutory basis in Section 305(c) of Division T of the Consolidated Appropriations Act, 2023, Pub. L. 117-328, 136 Stat. 4459, known as the SECURE 2.0 Act of 2022. The provision directs Treasury to expand the existing plan-correction system so IRA custodians can address eligible inadvertent failures involving an IRA.
The initial program is narrower than a general correction system for every IRA error. It covers the specified category of eligible inadvertent failures, including those resulting from service-provider errors, and makes the custodian or owner the party who submits a request.
Rollover waiver requests move from letter rulings toward the IRA process
The new procedure also offers a way for plan participants and IRA owners to ask for relief when a distribution was not rolled into another plan or IRA within the 60-day period. Previously, taxpayers had to seek these waivers through private letter ruling requests.
The waiver authority applies under sections 402(c)(3) and 408(d)(3) of the Internal Revenue Code. The law allows the Treasury secretary or a delegate to waive the period when applying it would be “against equity or good conscience,” including in circumstances involving casualty, disaster, or events beyond the reasonable control of the plan participant or IRA owner.
During 2027, taxpayers may seek a waiver through ICRS or Rev. Proc. 2027-4. Starting in 2028, the IRS anticipates that ICRS will be the only available route for these requests.
Existing relief options remain in place. Taxpayers who meet the conditions can still use automatic-waiver and self-certification procedures at no cost under Revenue Procedures 2020-46, 2016-47, and 2003-16.
Comments can shape future corrections before the IRA system opens
Treasury and the IRS are asking for public comments on both procedures. The IRA procedure specifically invites proposals for additional types of failures that a future version of the system could address.
Comments are due January 20, 2027. Submissions may go through Regulations.gov or by mail, and the agencies will make them public. The updated employee-plan procedure is scheduled for publication in IRB: 2026-46, dated November 9, 2026.
The comments will address both the potential use of the Department of Labor calculator for certain plan corrections and possible additions to the IRA program. The new IRA process begins May 1, 2027.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
