Failures Ineligible for EPCRS Self-Correction

Under Revenue Procedure 2021-30, certain failures cannot be corrected through the self-correction program (SCP) of the IRS Employee Plans Compliance Resolution System (EPCRS). 

A plan sponsor of a qualified plan or a 403(b) plan generally may use the SCP to self-correct certain significant operational failures and plan document failures by the last day of the third plan year following the plan year for which the failure occurred and may correct certain insignificant plan failures even if they are discovered on examination. 

However, certain failures are ineligible for correction under SCP, including:

• certain plan document failures;
• certain loan failures;
• employer eligibility failures; and 
• demographic failures.