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Published by J9 Systems. What's new in business tech, and what it means for yours.

From the brief of Thursday, November 5, 2026 · No. 21

From the daily brief

IRS Rev. Proc. 2026-34 expands error-correction rules for 401(k), SEP and SIMPLE plans

Effective Oct. 22. A separate IRA correction program starts May 1, 2027.

By Carter Josephson · · 1 min read

What happened

On Oct. 22 the IRS and Treasury issued Rev. Proc. 2026-34, which expands the Employee Plans Compliance Resolution System and replaces Rev. Proc. 2021-30. It took effect on release; a second procedure, Rev. Proc. 2026-33, creates a correction program for IRAs starting May 1, 2027.

What it means for a 10-to-50-person business

EPCRS is how an employer fixes mistakes in a retirement plan and keeps its tax benefits. It covers qualified plans such as 401(k)s, plus SEP and SIMPLE IRA plans. Say a 30-person electrical contractor learns its payroll provider sent 401(k) deferrals late for two pay periods. That is the kind of error this program exists for. The release does not list every new fix, so read the revenue procedure or ask your plan administrator before assuming a specific error qualifies. If your plan has no known errors, the effect on you is small.

What to do
Ask your vendor

Ask your 401(k) administrator whether any known errors, such as late deposits or missed enrollments, can be fixed under the new procedure.

What it costs
What it costs
Call with plan administrator
1 hr
Correction fees
ask for a quote; amounts depend on the error and the provider
Doing nothing
Known errors stay open, and the plan's tax-favored status stays at risk if the IRS finds them first
Sources
irs.gov (primary)

Questions owners ask

Does this change my contribution limits?

No. It only changes how plan errors are corrected.

Three to five of these, every weekday morning.

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