Publication date: October 26, 2026

What it is

On October 22, 2026, the Department of the Treasury and the IRS announced two new sets of rules for fixing mistakes in retirement accounts. One covers workplace retirement plans. The other creates a brand new correction program for Individual Retirement Accounts, or IRAs.

In plain terms: if an error happens inside a retirement account, there is now a clearer official path to fix it instead of leaving the account exposed to tax problems.

What the official source says

The IRS announcement, IR-2026-126, dated October 22, 2026, describes two revenue procedures.

The workplace plan program. Revenue Procedure 2026-34 updates and restructures the Employee Plans Compliance Resolution System, known as EPCRS. It replaces the earlier Revenue Procedure 2021-30. The IRS says this procedure is generally effective October 22, 2026. It covers qualified plans, section 403(b) plans, SEP arrangements, and SIMPLE IRA plans.

The new IRA program. Revenue Procedure 2026-33 creates the IRA Compliance Resolution System, called ICRS, as directed by the SECURE 2.0 Act of 2022. The IRS says ICRS is effective May 1, 2027, so it is not available yet. Right now ICRS consists of one program, the IRA Voluntary Correction Program. The IRS states plainly that self correction of IRA failures is not available under ICRS at this time.

According to the revenue procedure, the new IRA program is limited to four types of failures listed in its Appendix A: a missed required minimum distribution, an IRA established incorrectly, a distribution or rollover problem involving a nonspouse beneficiary, and a missed 60 day rollover. The IRS says the program may be expanded later based on public comments, and comments are due January 20, 2027.

A change for late rollovers. The revenue procedure also moves requests to waive the 60 day rollover deadline out of the private letter ruling process. For 2027, the IRS says taxpayers may apply under either the new program or the existing annual revenue procedure. Starting in 2028, the IRS expects these waiver requests to be handled only under the new program. For a missed 60 day rollover, the person who applies must be the IRA owner, not the financial institution.

Cost. The revenue procedure sets the user fee for a regular submission at $3,500 for applications filed before January 1, 2028. A group submission starts at $10,000 for the first 10 affected IRA owners, plus $250 for each additional owner, capped at $50,000.

What stays the same. The IRS says its existing no cost options remain available for taxpayers who qualify: the automatic waiver and self certification procedures under Revenue Procedures 2020-46, 2016-47, and 2003-16.

What this may mean for you

Most Dream Tax clients do not need to file anything this week. The new IRA program does not open until May 1, 2027.

This matters most if you already know something went wrong with a retirement account. That could be a rollover that missed the 60 day window, a required minimum distribution that was not taken, or an account that was opened as the wrong type. Under the old rules, fixing those problems often meant an expensive private letter ruling or no clean fix at all. The new program gives a defined process and a published fee.

Business owners who sponsor a retirement plan should also take note. The updated workplace plan program is already in effect as of October 22, 2026, and it changes how plan corrections are handled.

Nothing here changes your filing deadline, your tax rate, or your eligibility for a credit or deduction. It is about correcting account errors, not about new taxes.

What to do now

First, do not ignore a retirement account problem and do not assume it will fix itself. Gather the paperwork: the account statements, the distribution check or transfer record, any Form 1099-R, and the dates involved.

Second, check whether a no cost option already fits your situation before assuming you need the new paid program. The automatic waiver and self certification rules may cover you.

Third, bring the facts to us before you file anything with the IRS. Whether a correction belongs in this program, whether your tax year is still open, and what the correction should look like all depend on your specific account history. Filing the wrong form can cost money and time.

Official sources

IRS news release IR-2026-126, October 22, 2026:
https://www.irs.gov/newsroom/treasury-irs-update-retirement-plan-correction-program-and-establish-correction-program-for-individual-retirement-accounts

Revenue Procedure 2026-33, IRA Compliance Resolution System (PDF):
https://www.irs.gov/pub/irs-drop/rp-26-33.pdf

Revenue Procedure 2026-34, Employee Plans Compliance Resolution System (PDF):
https://www.irs.gov/pub/irs-drop/rp-26-34.pdf

IRS guidance on correcting plan errors:
https://www.irs.gov/retirement-plans/correcting-plan-errors

Dream Tax Service, Inc. is here to help. Call 404-207-7829 or visit dreamtaxservice.com.

Call Dream so you can sleep at night.