Common use of Effect on programs Clause in Contracts

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2001-17, 2001-7 I.R.B. 589, which was the prior consolidated statement of the correction programs under EPCRS. The modifications to Rev. Proc. 2001-17 that are reflected in this revenue procedure include: • 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)) • clarifying the factors considered under Audit CAP for determining a sanction amount. (section 14.02) • revising the checklist in Appendix C to include questions relating to Transferred Assets and the waiver of the excise tax under □ 4974. (Appendix C items 10 and 18) In addition, the 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 (b), 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) and 2.07(3), and Appendix C checklist item 26.

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 20012002-1747, 20012002-7 29 I.R.B. 589133, 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. 20012002-17 47 that are reflected in this revenue procedure include: • extending the duration of the self-consolidating all voluntary correction period under SCP procedures into a single voluntary correction program (VCP) (sections 4.01(2), 10) • providing a fixed fee schedule for significant operational compliance failures where the Plan Sponsor assumes a plan in connection with a corporate merger, acquisition, or other transaction. all VCP submissions (section 9.02(2)12) • extending eliminating the Anonymous Submission Procedure indefinitely. Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 10.13(310) • 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 Procedure procedures to permit the submission of failures listed in Appendix A all submissions under VCP including SEPs and Appendix B. SIMPLE IRA Plans (section 10.13(1)10.11, 10.12) • expanding the Anonymous Submission Procedure providing rules relating to VCGroup and VCSEP submissions. reporting plan loan failures (section 10.13(1)6.07) • providing guidance for EGTRRA nonamenders (section 4.10) • expanding the definition of Employer Eligibility Failure to include the adoption of a 401(k) plan by any ineligible employer. Overpayment (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)(c5.01(6)) • clarifying the date by which special exception to full correction of for imprecise or unavailable data (section 6.02(5)(a)) • adding a correction method for a failure related to Transferred Assets must be completed. obtain spousal consent (section 12.086.04) • clarifying that the correction of failures in a terminated plan may be made under VCP. VCP whether or not the trust is in existence (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)) • modifying 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 procedure relating method for early inclusion of an otherwise eligible employee to Excess Amounts under VCT and overcontributions under VCSEP. include improper inclusion due to the application of an incorrect entry date (sections 12.05(3) and 12.07(2Appendix B, section .07(3)) • clarifying eliminating the factors considered factor under Audit CAP for determining a sanction amount. 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) • revising adding a factor under Audit CAP concerning the checklist determination letter process (section 14.02) • adding Appendix D – sample formats to assist Plan Sponsors in Appendix C to include questions relating to Transferred Assets and the waiver of the excise tax under □ 4974. (Appendix C items 10 and 18) In addition, the 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 (b), 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) and 2.07(3), and Appendix C checklist item 26.preparing VCP submissions

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2001-17, 2001-7 I.R.B. 589589,2002-47, 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. 2001-17 172002- 47 that are reflected in this revenue procedure include: • 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(212.07(2))consolidating all voluntary correction procedures into a single voluntary correction program (VCP) (sections 4.01(2), 10) • clarifying eliminating the factors considered under Audit CAP for determining a sanction amount. Voluntary Correction of Operational Failures Standardized procedure (VCS) (section 14.0210) • providing for a single time for payment of compliance fees for most VCP submissions (sections 11.04, 11.05) • 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 checklist in Appendix C to include questions relating to Transferred Assets and the waiver of the excise tax under □ 4974. Group Submission compliance fee (Appendix C items 10 and 18) In addition, the following sections have been modified for purposes of clarification: sections 4.05, 5.01(810.12(3)(b), 5.02(3), 6.02(3), 6.02(5)(d), 6.05(1), 6.05(2)(a12.04) and • eliminating the requirement that VCP compliance fees be submitted by certified or cashier’s check (b), 9.05 Example 1, sections 10.06, 10.0911.05 and 12.01) • expanding the Anonymous and Group Submission procedures to all submissions under VCP including SEPs and SIMPLE IRA Plans (section 10.11, 10.13(210.12) • expanding the definition of Overpayment (section 5.01(6), 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) and 2.07(3), and Appendix C checklist item 26.

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2001-172001–17, 2001-7 I.R.B. 2001–1 C.B. 589, which was the prior consolidated statement of the correction programs under EPCRS. The modifications to Rev. Proc. 2001-17 2001–17 that are reflected in this revenue procedure proce- dure include: • extending the duration of the self-self- correction period under SCP for significant sig- nificant operational compliance failures fail- ures where the Plan Sponsor assumes a plan in connection with a corporate merger, acquisition, or other transactiontransac- tion. (section 9.02(2)) • extending the Anonymous Submission Submis- sion Procedure indefinitely. (section 10.13(3)) • expanding the Anonymous Submission Submis- sion Procedure to permit the submission submis- sion of failures listed in Appendix A and Appendix B. (section 10.13(1)) • expanding the Anonymous Submission Submis- sion 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 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 correcting cor- recting certain Overpayments. (section sec- tion 6.02(5)(c)) • clarifying the date by which correction correc- tion of a failure related to Transferred Assets must be completed. (section 12.08) • clarifying that the correction of failures fail- ures 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)) • clarifying the factors considered under Audit CAP for determining a sanction amount. (section 14.02) • revising the checklist in Appendix C to include questions relating to Transferred Trans- ferred Assets and the waiver of the excise tax under □ § 4974. (Appendix C items 10 and 18) In addition, the following sections have been modified for purposes of clarificationclari- fication: sections 4.05, 5.01(8), 5.02(3), 6.02(3), 6.02(5)(d), 6.05(1), 6.05(2)(a) and (b), 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) and 2.07(3), and Appendix C checklist item 26.,

Effect on programs. This revenue procedure modifies and supersedes Rev. Proc. 2001-17, 2001-7 I.R.B. 589, which was the prior consolidated statement of the correction programs under EPCRS. The modifications to Rev. Proc. 2001-17 that are reflected in this revenue procedure include: • Χ 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)) • Χ extending the Anonymous Submission Procedure indefinitely. (section 10.13(3)) • Χ 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)) • Χ 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)) • 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 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) • 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. (section 5.01(4)) • Χ modifying the correction procedure relating to Excess Amounts under VCT and overcontributions under VCSEP. (sections 12.05(3) and 12.07(2)) • Χ clarifying the factors considered under Audit CAP for determining a sanction amount. (section 14.02) • Χ revising the checklist in Appendix C to include questions relating to Transferred Assets and the waiver of the excise tax under □  4974. (Appendix C items 10 and 18) In addition, the 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 (b), 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) and 2.07(3), and Appendix C checklist item 26.