EPCRS Corrections for Plan Loan Failures

Summary

This practice note focuses on the correction methods for plan loan failures under the IRS's Employee Plans Compliance Resolution System (EPCRS) for addressing tax-qualification compliance issues in the operation or documentation of qualified retirement plans. The most recent EPCRS update, in Rev. Proc. 2021-30, included several favorable changes to the program for plan sponsors, including expanding the availability of streamlined correction methods for certain failures involving plan loans to participants that were first introduced to EPCRS in the 2019 update. Those correction methods and other aspects of using EPCRS to correct plan loan-related issues are discussed herein.