Plan Correction Answer Book, Third Edition

Plan Correction Answer Book provides the most current and comprehensive answers to the issues faced daily by plan administrators, benefits consultants, attorneys, and other pension professionals in the area of plan compliance. The authors examine the range of remedial programs available, the penalties that can be imposed, and the unique qualification issues for 401(k) plans and employee stock ownership plans.

Plan Correction Answer Book also outlines practices and procedures that ensure tax-qualified retirement plans are operated in accordance with Internal Revenue Code requirements.

Plan Correction Answer Book has been updated to include:

• The new procedures of the IRS's Employee Plans Compliance Resolution System (EPCRS), a comprehensive system of voluntary correction programs for qualified retirement plans (including 401(k) plans, 403(b) plans, SEPs, and SIMPLE IRAs)
• Revenue Procedure 2008-50, which took effect on January 1, 2009 and superseded Revenue Procedure 2006-27
• IRS's Checklist and Fix-It Guide for SIMPLE IRA Plans
• The article "IRS Assistance for Plans that Missed the Deadline for Adopting EGTRRA Plan Documents"

• 1. Overview
  • IRS Remedial Programs
  • Qualification Failures
  • Correction of Qualification Failures
  • Participation in Remedial Programs
  • Deciding Which Remedial Program to Use
  • Administration, Sanctions, and Fees
• 2. SCP
  • Eligible Qualification Failures
  • Plan Eligibility Requirements
  • Significant Operational Failure Correction
  • Insignificant Operational Failure Correction
  • Making Corrections
  • Using SCP
  • Administration of SCP
  • Employee Benefits Security Administration
• 3. VCP
  • Eligibility
  • Correction
  • Filing the VCP Application
  • Contents of the VCP Application
  • Processing the VCP Application
  • VCP Compliance Statement
  • Fee
  • Audit After VCP
• 4. Audit CAP
  • Eligibility
  • Using Audit CAP
  • Correction
  • Sanctions
  • Closing Agreement
• 5. Compliance Fees and Sanctions
  • Compliance Fees
  • Sanctions
  • Maximum Payment Amount
  • Equities
• 6. Correction Principles
  • Full Correction
  • No Plan Sponsor or No Trust
  • Failures and Corrections Involving Plan Amendments, Deprivation of Benefits, and Discrimination
  • Misallocations and Improper Distributions
  • Failures for Which the Code Imposes a Penalty Other Than Disqualification
  • Self-Correction Under SCP
  • Failure to Provide Minimum Top-Heavy Benefits
  • Failure of ADP or ACP Test
  • Failure to Distribute Excess Deferrals
  • Exclusion of Eligible Employees
  • Failure to Timely Pay Required Minimum Distributions
  • Failure to Obtain Consent Under QJSA Rules
  • Violation of Code Section 415 Limits
  • Failures Involving Vesting, Code Section 401(a)(17) Limit, and Hardship Distributions
  • IRS Case Studies
• 7. Section 401(k) Plan Qualification Failures
  • ADP and ACP Failures
  • Distribution of Employee Deferrals
  • Excess Deferrals
  • Excess Amounts Under Code Section 415
  • Impermissible CODAs
• 8. ESOPs
  • Pass-Through Voting Rights
  • Appraisals
  • Distribution Rules
  • Diversification Rules
  • Special Allocation Rules
  • Section 415 Issues (Maximum Allocations)