The IRS expanded correction options for retirement plans on Oct. 22, 2026. IRA owners gain their first formal IRA correction program, and many workplace-plan errors now qualify for free self-correction.
The new IRA Compliance Resolution System (ICRS) is an IRS process for fixing certain IRA errors with agency approval. The IRA option opens May 1, 2027, while the expanded employer-plan fixes took effect Oct. 22, 2026.
Official resources:
- Read the official guidance from Irs — Use this primary source to verify the official guidance.
- Read the official notice from Mercerst — Use this primary source to verify the official announcement.
Table of Contents
- What changed and when
- Which IRA errors qualify for ICRS?
- How the IRA filing works
- Try no-cost relief first
- What SEP and SIMPLE IRA savers should know
What changed and when
On Oct. 22, 2026, Treasury and IRS updated the Employee Plans Compliance Resolution System. It replaces the 2021 procedure for qualified plans, 403(b) plans, and SEP and SIMPLE IRA plans.
The same day brought the first formal IRA program, mandated by SECURE 2.0. The IRS describes both actions in its Oct. 22 announcement. The split matters because employer plans and IRAs now follow different correction tracks.
Which IRA errors qualify for ICRS?
ICRS starts narrow. It covers only inadvertent failures caused by service-provider errors.
Mercer Street reports in its Oct. 23 summary that only four errors qualify at first: If your error was not caused by a provider, or is not on this list, ICRS does not cover it. An example that fits is a custodian failing to pay your required minimum distribution on time.
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- provider-caused missed required minimum distributions
- IRA established as the wrong type
- failed nonspouse inherited-IRA rollover
- missed 60-day rollover
How the IRA filing works
An IRA owner, including an inherited-IRA beneficiary, or the custodian may apply. The applicant describes the failure, proposes a fix, and seeks a signed IRS compliance statement. Mercer Street notes the program initially offers only this voluntary filing route, with no self-correction option.
Applicants must file Form 15443 through Pay.gov and pay a fee. The American Retirement Association states in its October 2026 update that the standard fee is $3,500 for applications filed before Jan. 1, 2028. Applicants must be current on required tax filings, and the program is generally unavailable while a relevant return is under IRS examination.
Try no-cost relief first
Before paying for ICRS, check existing free relief. Late-rollover self-certification remains available at no cost for eligible missed rollovers. A request on Form 5329 to waive missed-RMD excise tax also remains available at no cost.
Mercer Street advises trying those routes first. Free relief can resolve the same practical problem without a filing fee. Save receipts, custodian letters, and tax records that show what happened and when.
What SEP and SIMPLE IRA savers should know
SEP and SIMPLE IRA plans remain under the employer-plan system, not ICRS. The updated employer-plan rules expand no-fee, no-filing self-correction to most eligible inadvertent failures. Covered fixes include document, eligibility, and loan failures corrected within a reasonable time after discovery.
Morgan Lewis explains in its Oct. 23 analysis that sponsors benefit from this broader self-correction window. If you save through a SEP or SIMPLE IRA at work, ask the plan sponsor to review the error promptly.
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