IRS Gives Pension Sponsors Reprieve for More Plan Corrections

The IRS will allow employee benefit plan sponsors to self-correct more inadvertent errors before the agency formally issues additional advice on the expanded self-correction program Congress authorized last year.

Guidance (IRS Notice 2023-43) the agency issued Thursday limits the relief to plan sponsors, not IRA custodians hired by workers or employers to manage individual retirement accounts outside the qualified plan space. The IRS doesn’t address the recovery of retirement plan overpayments also permitted under the new law.

The guidance is a big win for the most of the private-sector retirement industry that had been eager to start saving ...