IRS Outlines Steps for Fixing Employer Ineligibility Under Section 403(b)

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An employer that sponsors a retirement plan for which it is an ineligible sponsor could suffer severe tax consequences unless it corrects the error, IRS says in an article on tax code Section 403(b) plans in its online newsletter, Retirement News for Employers. Ineligible 403(b) plan sponsors can correct the error by using IRS's Voluntary Correction Program under Revenue Procedure 2013-12 if the ineligible employer's plan is not currently under an IRS audit, the newsletter says.