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‘Safe harbor’ correction guidance issued for retirement plans

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The Treasury Department and the Internal Revenue Service on Thursday announced new guidance to defined contribution retirement plans offering auto-enrollment features, Pensions & Investments reported. The guidance will make it easier for plan sponsors to easily correct administrative errors without risking the plan’s tax qualification and without having to obtain IRS approval, the agencies said a joint news release. “These simplified safe harbor correction methods build on previous steps to encourage plan sponsors to adopt ‘next generation’ features and practices that help employees save for retirement,” said J. Mark Iwry, deputy assistant secretary for retirement and health policy at the Treasury Department, in the release.