On October 22, 2026, Treasury and the IRS issued Revenue Procedure 2026-34, an overhaul of the Employee Plans Compliance Resolution System (EPCRS) that takes effect the same day, along with a separate correction system for IRAs that starts May 1, 2027. Employers who sponsor a SEP or SIMPLE IRA are inside the rewritten program.
The short answer
The IRS replaced its 2021 retirement plan correction rules on October 22, 2026, and created a new IRA correction system starting May 1, 2027. SEP and SIMPLE IRA sponsors are covered, so a missed or late contribution now has a clearer path to repair without losing the plan’s tax-favored status.
What happened
IR-2026-126 announced two revenue procedures. Revenue Procedure 2026-34 expands and restructures EPCRS and replaces Revenue Procedure 2021-30. It covers the Self-Correction Program, the Voluntary Correction Program and the Audit Closing Agreement Program, and it applies to qualified plans, 403(b) plans, SEP arrangements and SIMPLE IRA plans.
Revenue Procedure 2026-33 creates the IRA Compliance Resolution System (ICRS), which lets IRA custodians and owners request correction of certain inadvertent failures caused by service-provider errors. It also moves 60-day rollover waiver requests, currently handled as private letter ruling requests, into ICRS. During 2027 owners can use either route.
Law firm Morgan Lewis reports that the update makes the safe harbor for correcting automatic deferral failures permanent and gives sponsors more flexibility in addressing overpayments.
| Rev. Proc. 2026-34 (EPCRS) | Rev. Proc. 2026-33 (ICRS) | |
|---|---|---|
| Covers | Qualified plans, 403(b), SEP, SIMPLE IRA | IRAs |
| Effective | October 22, 2026 | May 1, 2027 |
| Replaces | Rev. Proc. 2021-30 | New program |
| Notable change | Broader self-correction; permanent auto-deferral safe harbor | Rollover waivers via ICRS instead of private letter ruling |
Per the IRS release, existing automatic waiver and self-certification procedures remain available at no cost. The release does not state fees for EPCRS or ICRS.
Why it matters
Retirement plan errors are usually bookkeeping errors first: an employee deferral withheld but not deposited, a contribution missed for an eligible employee, a wrong compensation figure. A rewritten correction program does not make those mistakes go away, but it changes how they get fixed.
What this means for small employers
- Reconcile payroll deductions to plan deposits every pay period, not at year end.
- Keep the evidence trail: elections, payroll registers, deposit confirmations.
- Ask your plan provider or advisor whether a past error now qualifies for self-correction.
CentsIQ reconciles retirement plan withholdings against remittances as part of monthly bookkeeping, which is where most of these errors are first visible.
IRS CEO Frank Bisignano said the procedures “simplify and speed up how errors with certain retirement plans and IRAs can get corrected.” (IRS, Oct. 22, 2026)
Frequently asked questions
Does this apply to SEP and SIMPLE IRA plans?
Yes. The IRS says Rev. Proc. 2026-34 applies to SEP arrangements and SIMPLE IRA plans.
When does it take effect?
Rev. Proc. 2026-34 is effective October 22, 2026. The IRA system starts May 1, 2027.
Is there a fee?
The IRS release does not state fees. Confirm with your plan advisor before filing anything.
Can I fix an old error now?
That depends on the error and the plan type. Ask a plan advisor.
The bottom line
Retirement plan mistakes are fixable, and the IRS has just widened the repair path. The earlier a deposit error is caught, the easier the fix.
Last updated: October 27, 2026.
