Qualified Plans and 403(b) Plans

The SCP permits sponsors of Qualified Plans and 403(b) Plans for which sufficient compliance practices and procedures have been established to self-correct an insignificant operational problem at any time, preserve the tax-favored status of the plan and pay no fee. Even where the problem is significant, a conscientious Plan Sponsor who, within two years of the year in which the problem occurs, both uncovers an operational problem and corrects it to a substantial degree, may preserve the tax-favored status of the plan and pay no fee. There are no application or reporting requirements under the SCP. The relief under the SCP is limited to Operational Failures.

SEPs and SIMPLE IRA Plans

The SCP permits sponsors of SEPs and SIMPLE IRA Plans for which sufficient compliance practices and procedures have been established to self-correct an insignificant operational problem at any time, preserve the tax-favored status of the plan and pay no fee. There are no application or reporting requirements under the SCP. The relief under the SCP is limited to Operational Failures.

Learn more about how to correct plan errors.