IR-2008-96 summarizes Rev. Proc. 2008-50 which expands and enhances the scope of the Employee Plans Compliance Resolution System (EPCRS). Qualified plan sponsors, as well as sponsors of SEP, SIMPLE, and SARSEP plans, will be able to correct plan errors to preserve the tax favored status of such plans. The new Rev. Proc. makes numerous changes to existing guidance including expanding the definition of loan failures, liberalizing the rules for determining whether there was substantial completion of correction as of the date a plan sponsor is considered to be under examination and expanding the failures for which corrections are provided. Fees for EPCRS filings will remain the same, based on the size of the plan and the number of participants. The IRS has asked for suggestions for additional improvements to EPCRS related to designated Roth contributions and methods to correct the failure to implement automatic enrollment for elective deferrals in a 401(k) plan that has automatic enrollment provisions. Additional guidance from the IRS is expected.
So, if your physician practice has one of the retirement plans listed above, make sure they are in compliance with all current tax laws. You might want to ask your plan administrator or the person who helped you set up the plan about this issue.