Employers get simpler tax relief for fixing retirement plan errors
What happened
The US Labor Department made it simpler and broader for employers to fix mistakes in employee benefit plans. This means employers can correct certain errors and avoid both civil penalties and excise taxes.
Why it matters
It reduces the financial risk for employers who discover they made errors managing employee retirement plans. Employers might now be more willing to self-report and fix problems, rather than hoping they go unnoticed.
The signal
Watch for an increase in the number of employers using the Voluntary Fiduciary Correction Program in the next year.