IRS and DOL Issue Guidance on 401k and Employee Benefits

The Internal Revenue Service (IRS) and the Department of Labor (DOL) have highlighted tools and programs for correcting errors in employer‑sponsored retirement and health plans. The IRS’s Employee Plans Compliance Resolution System (EPCRS) allows plan sponsors to identify and fix mistakes promptly, preserving the tax‑qualified status of 401(k) plans. Attorneys such as Ary Rosenbaum of Rosenbaum Law Firm stress that early correction and transparent communication are essential for fiduciary governance.

Recent regulatory updates include the IRS’s Revenue Procedure 2026‑26, which raises the Affordable Care Act affordability threshold to 10.22% of household income for 2027, the highest level since the law’s inception. The DOL has also issued proposed rules for electronic document distribution and other benefits‑compliance considerations. Employers are urged to review these changes to avoid penalties and ensure continued coverage affordability for employees.