IRS creates a correction program for IRA errors, starting May 1, 2027

Treasury and the IRS created the IRA Compliance Resolution System, a program that lets IRA owners and custodians ask to fix certain mistakes caused by service providers. The program, required by the SECURE 2.0 Act of 2022, takes effect May 1, 2027. It will also take requests to waive the 60-day deadline for moving money from one plan or IRA into another, which today need a private letter ruling; that shift happens over 2027 and 2028. A second revenue procedure, effective Oct. 22, updates the existing correction program for employer retirement plans.

Why it matters: Until now IRA owners had no formal IRS program for fixing errors made by their providers, and 60-day rollover waivers required a private letter ruling. The existing automatic waiver and self-certification options stay available at no cost for those who qualify.