On October 22, 2026, the IRS rolled out a new IRA correction program — called the IRA Compliance Resolution System (ICRS) — that will let IRA owners and custodians fix certain account errors starting May 1, 2027, while also updating the existing correction rules for 401(k)s and other workplace retirement plans, effective immediately.
What did the IRS actually announce?
The Treasury Department and IRS issued two separate pieces of guidance on the same day. The Department of the Treasury and the Internal Revenue Service issued two revenue procedures that update the correction program for employee retirement plans and create one for Individual Retirement Accounts. In plain terms: one document updates the rulebook companies already use to fix mistakes in 401(k)s and similar plans, and the other creates a brand-new fix-it process for IRAs, which never had one before.
What is the new IRA correction program (ICRS)?
Until now, if an IRA custodian (the bank or brokerage holding your IRA) made an error — like missing a required withdrawal — there was no formal IRS process built just for IRAs to fix it without risking the account’s tax-favored status. That changes with ICRS. Revenue Procedure 2026-33 establishes the IRA Compliance Resolution System (ICRS), a correction program for IRAs, enacted as part of the SECURE 2.0 Act of 2022, which permits IRA custodians and IRA owners to request correction of certain eligible inadvertent failures caused by service-provider errors.
The new system is modeled on the long-running correction program for employer plans. At launch, ICRS consists only of the IRA Voluntary Correction Program, or IVCP, and its applicant is the IRA custodian or IRA owner making the submission.
Does this help with missed rollover deadlines too?
Yes. One of the more practical pieces for everyday savers involves the 60-day rollover rule — the deadline for moving money from one retirement account to another without triggering taxes. ICRS also provides a process for retirement plan participants and IRA owners to request to waive the requirement that a rollover to another plan or IRA be made within 60 days of the distribution, a request that currently must be submitted as a private letter ruling, with the transition to ICRS happening over the course of 2027 and 2028.
Importantly, free options already in place aren’t going away. Existing automatic waiver and self-certification procedures remain available, at no cost, for taxpayers who meet the requirements under Revenue Procedures 2020-46, 2016-47, and 2003-16.
What changed for 401(k)s and other employer retirement plans?
The second document updates a system employers and plan administrators have used for years. EPCRS includes the Self-Correction Program, Voluntary Correction Program, and Audit Closing Agreement Program, which together allow sponsors of qualified plans, section 403(b) plans, SEP arrangements, and SIMPLE IRA plans to make corrections and continue providing retirement benefits on a tax-favored basis. The update expands the Employee Plans Compliance Resolution System and replaces and restructures the Revenue Procedure 2021-30 previously used by employee plan sponsors to make plan corrections, effective the day it was issued.
When do these changes take effect?
| Guidance | What it covers | Effective date |
|---|---|---|
| Revenue Procedure 2026-34 | Updated correction rules for 401(k)s, 403(b)s, SEP and SIMPLE IRA plans (EPCRS) | Oct. 22, 2026 (immediate) |
| Revenue Procedure 2026-33 | New IRA Compliance Resolution System (ICRS) | May 1, 2027 |
Separate reporting confirms this split timeline: Revenue Procedure 2026-34 revises the employee-plan framework and took effect upon issuance, while a companion procedure creates an IRA correction system that starts May 1, 2027.
Who does this IRA correction program actually affect?
- IRA owners — if a custodian error caused a problem like a missed required minimum distribution, there will soon be a defined IRS path to fix it.
- IRA custodians (banks, brokerages, trust companies) — they are the ones who typically submit these correction requests on behalf of account holders.
- 401(k), 403(b), SEP, and SIMPLE IRA plan sponsors — employers and plan administrators work with an updated version of the correction rules they already use.
- People who missed a 60-day rollover deadline — over 2027-2028, a new application route opens up alongside existing free self-certification options.
Do ordinary savers need to do anything right now?
For most individual savers, this is background plumbing rather than an action item today. The IRA correction program doesn’t take effect until May 1, 2027, and it’s designed to be used when a custodian or service provider — not the account holder — makes an inadvertent error. The IRS release describes the changes as part of an effort to make tax compliance easier, though it does not say how many IRA owners are expected to use the new route. If you ever receive a notice from your IRA custodian about a correction, this is the framework they’ll likely be using once it’s live.
Sources
- IRS Newsroom: IR-2026-126
- 401(k) Specialist: IRS Updates Retirement Plan Correction Rules, Adds IRA Program
- VisaVerge: IRS Retirement Plan and IRA Correction Rules for 2026
- Current Federal Tax Developments: Technical Analysis of Revenue Procedure 2026-33
- The Money Overview: IRS IRA Correction System Coverage
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