The New IRA Correction Program 2026
A Long-Awaited Fix for IRA Errors
For years, retirement account owners who discovered errors in their Individual Retirement Accounts faced a frustrating reality. The IRS had a correction program for employer-sponsored retirement plans—the Employee Plans Compliance Resolution System (EPCRS)—but no equivalent for IRAs. Mistakes involving rollover timing, contribution limits, or required minimum distributions often required costly private letter ruling requests or left taxpayers without a clear path to resolution.
That changed on October 22, 2026. The Department of the Treasury and the Internal Revenue Service issued two revenue procedures: one updating the correction program for employee retirement plans, and one establishing a new correction program for Individual Retirement Accounts .
This guide explains what the new program covers, who can use it, and what it means for IRA owners and their advisors.
The IRA Compliance Resolution System (ICRS)
The new program is called the IRA Compliance Resolution System (ICRS), established under Revenue Procedure 2026-33 . It was enacted as part of the SECURE 2.0 Act of 2022, which directed the Treasury and IRS to create a correction mechanism for IRAs modeled on the existing employee plan program.
IRS Chief Executive Officer Frank J. Bisignano stated: “Hard working Americans will benefit from these procedures because they simplify and speed up how errors with certain retirement plans and IRAs can get corrected when there is a simple problem. These procedures are part of our effort to make complying with the nation’s tax laws easier and less burdensome for taxpayers” .
What ICRS Covers
The new system permits IRA custodians and IRA owners to request correction of certain eligible inadvertent failures caused by service-provider errors . This is a significant expansion of relief. Previously, an IRA owner who discovered an error had limited options: self-correct if the error qualified under existing guidance, or file a private letter ruling request at significant cost.
ICRS provides a structured, administrative process for correcting errors without the expense and uncertainty of a private letter ruling.
The 60-Day Rollover Waiver
One of the most practical features of ICRS is its handling of the 60-day rollover rule. Under current law, a distribution from an IRA or retirement plan must be rolled over to another IRA or plan within 60 days to avoid taxation. Missing that deadline generally makes the distribution taxable.
Currently, requests to waive the 60-day requirement must be submitted as private letter ruling requests. Under ICRS, these requests will be transitioned to the new correction program over the course of 2027 and 2028 . This change should make relief more accessible and less expensive for taxpayers who miss the deadline due to service-provider errors or other qualifying circumstances.
Existing Waiver Procedures Remain
Importantly, 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 . IRA owners who qualify for these existing procedures do not need to use ICRS.
The Updated Employee Plans Program (EPCRS)
Alongside the new IRA program, the IRS issued Revenue Procedure 2026-34, which expands the Employee Plans Compliance Resolution System and replaces the prior guidance under Revenue Procedure 2021-30 .
EPCRS includes three components: the Self-Correction Program, the Voluntary Correction Program, and the Audit Closing Agreement Program. Together, these programs 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 updated procedure restructures and expands the existing program, reflecting the IRS’s ongoing effort to streamline correction processes for retirement plan sponsors.
Effective Dates and Transition
The new EPCRS procedure is effective immediately, as of October 22, 2026 . The ICRS procedure is effective May 1, 2027 .
This staggered effective date gives IRA custodians and owners time to understand the new process before it becomes available. Treasury and the IRS have invited comments on both programs, and each revenue procedure identifies issues on which comments are particularly requested, along with submission instructions and comment deadlines .
What This Means for IRA Owners
For IRA owners who discover errors in their accounts, the new ICRS program creates a clearer path to resolution. The key points to understand:
Service-provider errors are eligible. If an error resulted from a custodian’s mistake—incorrect processing, misapplied contributions, or administrative failures—ICRS may provide relief.
Self-correction remains available for qualifying errors. The existing self-certification procedures for waiver of the 60-day rollover rule remain in place at no cost.
The private letter ruling path is being phased out for rollover waivers. Over 2027 and 2028, requests for 60-day rollover waivers will transition from private letter rulings to ICRS.
The program takes effect May 1, 2027. IRA owners and custodians should mark this date and prepare for the transition.
How Nova Tax & Accounting Services Can Help
Nova Tax & Accounting Services helps individuals and families manage retirement accounts, including IRA distributions, rollovers, and required minimum distributions. Our CPAs stay current with IRS guidance and can help you understand your options when errors occur.
For more information, visit https://novataxservices.com/ or schedule a free consultation.
Additional Resources
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws are subject to change, and individual circumstances vary. Consult a qualified tax professional for advice regarding your specific situation.
