Common use of Effect on programs Clause in Contracts

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2002-47, 2002-29 I.R.B. 133, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 2002-47 that are reflected in this revenue procedure include: • consolidating all voluntary correction procedures into a single voluntary correction program (VCP) (sections 4.01(2), 10) • providing a fixed fee schedule for all VCP submissions (section 12) • eliminating the Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10) • providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05) • expanding EPCRS to SIMPLE IRA Plans (section 4.01) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b), 12.04) • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01) • expanding the Anonymous and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans (section 10.11, 10.12) • providing rules relating to reporting plan loan failures (section 6.07) • providing guidance for EGTRRA nonamenders (section 4.10) • expanding the definition of Overpayment (section 5.01(6)) • clarifying the special exception to full correction for imprecise or unavailable data (section 6.02(5)(a)) • adding a correction method for a failure to obtain spousal consent (section 6.04) • clarifying that the correction of failures in a terminated plan may be made under VCP whether or not the trust is in existence (section 10.03) • updating the definition of Favorable Letter (section 5.01(4)) • revising the Form 5500 information required for VCP submissions (section 11.03) • extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01) • expanding the correction method for early inclusion of an otherwise eligible employee to include improper inclusion due to the application of an incorrect entry date (Appendix B, section .07(3)) • eliminating the factor under Audit CAP that referred to the VCP fees to emphasize that the Maximum Payment Amount is the basis upon which Audit CAP sanctions are negotiated (section 14.02) • adding a factor under Audit CAP concerning the determination letter process (section 14.02) • adding Appendix D – sample formats to assist Plan Sponsors in preparing VCP submissions

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 20022001-4717, 20022001-29 7 I.R.B. 133589, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 20022001-47 17 that are reflected in this revenue procedure include: • consolidating all voluntary extending the duration of the self-correction procedures into period under SCP for significant operational compliance failures where the Plan Sponsor assumes a single voluntary correction program plan in connection with a corporate merger, acquisition, or other transaction. (VCP) (sections 4.01(2section 9.02(2), 10) • providing a fixed fee schedule for all VCP submissions extending the Anonymous Submission Procedure indefinitely. (section 12) • eliminating the Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10) • providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05) • expanding EPCRS to SIMPLE IRA Plans (section 4.01) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b10.13(3), 12.04) • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01) • expanding the Anonymous Submission Procedure to permit the submission of failures listed in Appendix A and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans Appendix B. (section 10.11, 10.1210.13(1)) • providing rules relating expanding the Anonymous Submission Procedure to reporting plan loan failures VCGroup and VCSEP submissions. (section 6.07) • providing guidance for EGTRRA nonamenders (section 4.1010.13(1)) • expanding the definition of Overpayment Employer Eligibility Failure to include the adoption of a 401(k) plan by any ineligible employer. (section 5.01(65.01(2)(d)) • broadening the VCGroup procedures to permit eligible organizations to submit operational and plan document failures in a single submission. (section 10.15(1)) • increasing the de minimis amount relating to corrective distributions. (section 6.02(5)(b)) • providing a de minimis rule for correcting certain Overpayments. (section 6.02(5)(c)) • clarifying the special exception date by which correction of a failure related to full correction for imprecise or unavailable data Transferred Assets must be completed. (section 6.02(5)(a)) • adding a correction method for a failure to obtain spousal consent (section 6.0412.08) • clarifying that the correction of failures in a terminated plan may be made under VCP whether or not the trust is in existence VCP. (section 10.03) • clarifying what items may be excluded from the initial submission under the Anonymous Submission Procedure. (section 10.13(1)) • updating the definition of Favorable Letter Letter. (section 5.01(4)) • revising the Form 5500 information required for VCP submissions (section 11.03) • extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01) • expanding modifying the correction method for early inclusion of an otherwise eligible employee procedure relating to include improper inclusion due to the application of an incorrect entry date Excess Amounts under VCT and overcontributions under VCSEP. (Appendix B, section .07(3sections 12.05(3) and 12.07(2)) • eliminating clarifying the factor factors considered under Audit CAP that referred to the VCP fees to emphasize that the Maximum Payment Amount is the basis upon which Audit CAP sanctions are negotiated for determining a sanction amount. (section 14.02) • adding a factor revising the checklist in Appendix C to include questions relating to Transferred Assets and the waiver of the excise tax under Audit CAP concerning □ 4974. (Appendix C items 10 and 18) In addition, the determination letter process following sections have been modified for purposes of clarification: sections 4.05, 5.01(8), 5.02(3), 6.02(3), 6.02(5)(d), 6.05(1), 6.05(2)(a) and (section 14.02b), 9.05 Example 1, 10.06, 10.09, 10.13(2), 10.15(2), 10.15(3)(b), 11.01, 11.02(11), 11.03(4), 11.04(3), 11.04(4), 11.05, 11.12, 12.01(1), 12.01(3)(a), 12.02, 12.08, 13.02, 14.03, 15, 16, 17, Appendix A .05, Appendix B 2.01(b)(i) • adding and 2.07(3), and Appendix D – sample formats to assist Plan Sponsors in preparing VCP submissionsC checklist item 26.

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 20022001-4717, 20022001-29 7 I.R.B. 133589, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 20022001-47 17 that are reflected in this revenue procedure include: • consolidating all voluntary Χ extending the duration of the self-correction procedures into period under SCP for significant operational compliance failures where the Plan Sponsor assumes a single voluntary correction program (VCP) (sections 4.01(2)plan in connection with a corporate merger, 10) • providing a fixed fee schedule for all VCP submissions acquisition, or other transaction. (section 129.02(2)) • eliminating Χ extending the Voluntary Correction of Operational Failures Standardized procedure (VCS) Anonymous Submission Procedure indefinitely. (section 1010.13(3)) • providing for a single time for payment Χ expanding the Anonymous Submission Procedure to permit the submission of compliance fees for most VCP submissions (sections 11.04, 11.05) • expanding EPCRS to SIMPLE IRA Plans failures listed in Appendix A and Appendix B. (section 4.01) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b10.13(1), 12.04) • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01) • expanding the Anonymous Submission Procedure to VCGroup and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans VCSEP submissions. (section 10.11, 10.1210.13(1)) • providing rules relating to reporting plan loan failures (section 6.07) • providing guidance for EGTRRA nonamenders (section 4.10) • Χ expanding the definition of Overpayment Employer Eligibility Failure to include the adoption of a 401(k) plan by any ineligible employer. (section 5.01(65.01(2)(d)) • Χ broadening the VCGroup procedures to permit eligible organizations to submit operational and plan document failures in a single submission. (section 10.15(1)) Χ increasing the de minimis amount relating to corrective distributions. (section 6.02(5)(b)) Χ providing a de minimis rule for correcting certain Overpayments. (section 6.02(5)(c)) Χ clarifying the special exception date by which correction of a failure related to full correction for imprecise or unavailable data Transferred Assets must be completed. (section 6.02(5)(a)) • adding a correction method for a failure to obtain spousal consent (section 6.0412.08) • clarifying that the correction of failures in a terminated plan may be made under VCP whether or not the trust is in existence VCP. (section 10.03) • Χ clarifying what items may be excluded from the initial submission under the Anonymous Submission Procedure. (section 10.13(1)) Χ updating the definition of Favorable Letter Letter. (section 5.01(4)) • revising the Form 5500 information required for VCP submissions (section 11.03) • extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01) • expanding Χ modifying the correction method for early inclusion of an otherwise eligible employee procedure relating to include improper inclusion due to the application of an incorrect entry date Excess Amounts under VCT and overcontributions under VCSEP. (Appendix B, section .07(3sections 12.05(3) and 12.07(2)) • eliminating Χ clarifying the factor factors considered under Audit CAP that referred to the VCP fees to emphasize that the Maximum Payment Amount is the basis upon which Audit CAP sanctions are negotiated for determining a sanction amount. (section 14.02) • adding a factor Χ revising the checklist in Appendix C to include questions relating to Transferred Assets and the waiver of the excise tax under Audit CAP concerning . 4974. (Appendix C items 10 and 18) In addition, the determination letter process following sections have been modified for purposes of clarification: sections 4.05, 5.01(8), 5.02(3), 6.02(3), 6.02(5)(d), 6.05(1), 6.05(2)(a) and (section 14.02b), 9.05 Example 1, 10.06, 10.09, 10.13(2), 10.15(2), 10.15(3)(b), 11.01, 11.02(11), 11.03(4), 11.04(3), 11.04(4), 11.05, 11.12, 12.01(1), 12.01(3)(a), 12.02, 12.08, 13.02, 14.03, 15, 16, 17, Appendix A .05, Appendix B 2.01(b)(i) • adding and 2.07(3), and Appendix D – sample formats to assist Plan Sponsors in preparing VCP submissionsC checklist item 26.

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 20022001-17, 2001-7 I.R.B. 589,2002-47, 2002-29 I.R.B. 133, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 20022001-172002- 47 that are reflected in this revenue procedure include: • consolidating extending the duration of the self-correction period under SCP for significant operational compliance failures where the Plan Sponsor assumes a plan in connection with a corporate merger, acquisition, or other transaction. (section 9.02(2)) extending the Anonymous Submission Procedure indefinitely. (section 10.13(3)) expanding the Anonymous Submission Procedure to permit the submission of failures listed in Appendix A and Appendix B. (section 10.13(1)) expanding the Anonymous Submission Procedure to VCGroup and VCSEP submissions. (section 10.13(1)) expanding the definition of Employer Eligibility Failure to include the adoption of a 401(k) plan by any ineligible employer. (section 5.01(2)(d)) broadening the VCGroup procedures to permit eligible organizations to submit operational and plan document failures in a single submission. (section 10.15(1)) increasing the de minimis amount relating to corrective distributions. (section 6.02(5)(b)) providing a de minimis rule for correcting certain Overpayments. (section 6.02(5)(c)) clarifying the date by which correction of a failure related to Transferred Assets must be completed. (section 12.08) clarifying that the correction of failures in a terminated plan may be made under VCP. (section 10.03) clarifying what items may be excluded from the initial submission under the Anonymous Submission Procedure. (section 10.13(1)) updating the definition of Favorable Letter. (section 5.01(4)) modifying the correction procedure relating to Excess Amounts under VCT and overcontributions under VCSEP. (sections 12.05(3) and 12.07(2))consolidating all voluntary correction procedures into a single voluntary correction program (VCP) (sections 4.01(2), 10) • providing a fixed fee schedule for all VCP submissions (section 12) • eliminating the Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10) • providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05) • expanding EPCRS to SIMPLE IRA Plans (section 4.01) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b), 12.04) • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01) • expanding the Anonymous and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans (section 10.11, 10.12) • providing rules relating to reporting plan loan failures (section 6.07) • providing guidance for EGTRRA nonamenders (section 4.10) • expanding the definition of Overpayment (section 5.01(6)) • clarifying the special exception to full correction for imprecise or unavailable data (section 6.02(5)(a)) • adding a correction method for a failure to obtain spousal consent (section 6.04) • clarifying that the correction of failures in a terminated plan may be made under VCP whether or not the trust is in existence (section 10.03) • updating the definition of Favorable Letter (section 5.01(4)) • revising the Form 5500 information required for VCP submissions (section 11.03) • extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01) • expanding the correction method for early inclusion of an otherwise eligible employee to include improper inclusion due to the application of an incorrect entry date (Appendix B, section .07(3)) • eliminating the factor under Audit CAP that referred to the VCP fees to emphasize that the Maximum Payment Amount is the basis upon which Audit CAP sanctions are negotiated (section 14.02) • adding a factor under Audit CAP concerning the determination letter process (section 14.02) • adding Appendix D – sample formats to assist Plan Sponsors in preparing VCP submissions

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 20022001-4717, 20022001-29 7 I.R.B. 133589, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 20022001-47 17 that are reflected in this revenue procedure include: • consolidating all voluntary Χ extending the duration of the self-correction procedures into period under SCP for significant operational compliance failures where the Plan Sponsor assumes a single voluntary correction program (VCP) (sections 4.01(2)plan in connection with a corporate merger, 10) • providing a fixed fee schedule for all VCP submissions acquisition, or other transaction. (section 129.02(2)) • eliminating Χ extending the Voluntary Correction of Operational Failures Standardized procedure (VCS) Anonymous Submission Procedure indefinitely. (section 1010.13(3)) • providing for a single time for payment Χ expanding the Anonymous Submission Procedure to permit the submission of compliance fees for most VCP submissions (sections 11.04, 11.05) • expanding EPCRS to SIMPLE IRA Plans failures listed in Appendix A and Appendix B. (section 4.01) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b10.13(1), 12.04) • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01) • expanding the Anonymous Submission Procedure to VCGroup and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans VCSEP submissions. (section 10.11, 10.1210.13(1)) • providing rules relating to reporting plan loan failures (section 6.07) • providing guidance for EGTRRA nonamenders (section 4.10) • Χ expanding the definition of Overpayment Employer Eligibility Failure to include the adoption of a 401(k) plan by any ineligible employer. (section 5.01(65.01(2)(d)) • Χ broadening the VCGroup procedures to permit eligible organizations to submit operational and plan document failures in a single submission. (section 10.15(1)) Χ increasing the de minimis amount relating to corrective distributions. (section 6.02(5)(b)) Χ providing a de minimis rule for correcting certain Overpayments. (section 6.02(5)(c)) Χ clarifying the special exception date by which correction of a failure related to full correction for imprecise or unavailable data Transferred Assets must be completed. (section 6.02(5)(a)) • adding a correction method for a failure to obtain spousal consent (section 6.0412.08) • clarifying that the correction of failures in a terminated plan may be made under VCP whether or not the trust is in existence VCP. (section 10.03) • Χ clarifying what items may be excluded from the initial submission under the Anonymous Submission Procedure. (section 10.13(1)) Χ updating the definition of Favorable Letter Letter. (section 5.01(4)) • revising the Form 5500 information required for VCP submissions (section 11.03) • extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01) • expanding Χ modifying the correction method for early inclusion of an otherwise eligible employee procedure relating to include improper inclusion due to the application of an incorrect entry date Excess Amounts under VCT and overcontributions under VCSEP. (Appendix B, section .07(3sections 12.05(3) and 12.07(2)) • eliminating Χ clarifying the factor factors considered under Audit CAP that referred to the VCP fees to emphasize that the Maximum Payment Amount is the basis upon which Audit CAP sanctions are negotiated for determining a sanction amount. (section 14.02) • adding a factor Χ revising the checklist in Appendix C to include questions relating to Transferred Assets and the waiver of the excise tax under Audit CAP concerning  4974. (Appendix C items 10 and 18) In addition, the determination letter process following sections have been modified for purposes of clarification: sections 4.05, 5.01(8), 5.02(3), 6.02(3), 6.02(5)(d), 6.05(1), 6.05(2)(a) and (section 14.02b), 9.05 Example 1, 10.06, 10.09, 10.13(2), 10.15(2), 10.15(3)(b), 11.01, 11.02(11), 11.03(4), 11.04(3), 11.04(4), 11.05, 11.12, 12.01(1), 12.01(3)(a), 12.02, 12.08, 13.02, 14.03, 15, 16, 17, Appendix A .05, Appendix B 2.01(b)(i) • adding and 2.07(3), and Appendix D – sample formats to assist Plan Sponsors in preparing VCP submissionsC checklist item 26.

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2002-472001–17, 2002-29 I.R.B. 1332001–1 C.B. 589, which was the prior consolidated statement of the correction programs under EPCRS. A number of changes have been made to simplify EPCRS and increase uniformity in the administration process and fee structure. The modifications to Rev. Proc. 2002-47 2001–17 that are reflected in this revenue procedure proce- dure include: • consolidating all voluntary extending the duration of the self- correction procedures into period under SCP for sig- nificant operational compliance fail- ures where the Plan Sponsor assumes a single voluntary correction program plan in connection with a corporate merger, acquisition, or other transac- tion. (VCP) (sections 4.01(2section 9.02(2), 10) • providing a fixed fee schedule for all VCP submissions extending the Anonymous Submis- sion Procedure indefinitely. (section 12) • eliminating the Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10) • providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05) • expanding EPCRS to SIMPLE IRA Plans (section 4.01) • adding correction methods and reporting instructions for SEPs and SIMPLE IRA Plans (section 6.10) • simplifying the Group Submission procedure by eliminating the POA requirement and revising the Group Submission compliance fee (sections 10.12(3)(b10.13(3), 12.04) • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (sections 10.06, 11.05 and 12.01) • expanding the Anonymous Submis- sion Procedure to permit the submis- sion of failures listed in Appendix A and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans Appendix B. (section 10.11, 10.1210.13(1)) • providing rules relating expanding the Anonymous Submis- sion Procedure to reporting plan loan failures VCGroup and VCSEP submissions. (section 6.07) • providing guidance for EGTRRA nonamenders (section 4.1010.13(1)) • expanding the definition of Overpayment Employer Eligibility Failure to include the adoption of a 401(k) plan by any ineligible employer. (section 5.01(65.01(2)(d)) • broadening the VCGroup procedures to permit eligible organizations to submit operational and plan document failures in a single submission. (sec- tion 10.15(1)) • increasing the de minimis amount relating to corrective distributions. (section 6.02(5)(b)) • providing a de minimis rule for cor- recting certain Overpayments. (sec- tion 6.02(5)(c)) • clarifying the special exception date by which correc- tion of a failure related to full correction for imprecise or unavailable data Transferred Assets must be completed. (section 6.02(5)(a)) • adding a correction method for a failure to obtain spousal consent (section 6.0412.08) • clarifying that the correction of failures fail- ures in a terminated plan may be made under VCP whether or not the trust is in existence VCP. (section 10.03) • clarifying what items may be excluded from the initial submission under the Anonymous Submission Procedure. (section 10.13(1)) • updating the definition of Favorable Letter Letter. (section 5.01(4)) • revising the Form 5500 information required for VCP submissions (section 11.03) • extending correction methods in Appendix A and Appendix B to 403(b) Plans, SEPs and SIMPLE IRA Plans (Appendix A, section .01 and Appendix B, section 1.01) • expanding modifying the correction method for early inclusion of an otherwise eligible employee procedure relating to include improper inclusion due to the application of an incorrect entry date Excess Amounts under VCT and overcontributions under VCSEP. (Appendix B, section .07(3sections 12.05(3) and 12.07(2)) • eliminating clarifying the factor factors considered under Audit CAP that referred to the VCP fees to emphasize that the Maximum Payment Amount is the basis upon which Audit CAP sanctions are negotiated for determining a sanction amount. (section 14.02) • adding a factor revising the checklist in Appendix C to include questions relating to Trans- ferred Assets and the waiver of the excise tax under Audit CAP concerning § 4974. (Appendix C items 10 and 18) In addition, the determination letter process (section 14.02) • adding Appendix D – sample formats to assist Plan Sponsors in preparing VCP submissionsfollowing sections have been modified for purposes of clari- fication: sections 4.05, 5.01(8), 5.02(3),