Self-Correction Program (SCP)

The SCP is one of the three programs of the IRS called the Employee Plans Compliance Resolution System (EPCRS) which are for correcting retirement plan errors. The SCP is the first-level option available and is offered without any fees incurred to the plan sponsor. Self-correction can only be done for correcting operational mistakes which occur when the plan was done in a way that did not comply with the written terms. Insignificant operational mistakes can be cured using the SCP even after two years. For more significant operational errors or failures, they must be corrected within two years of the end of the year in which the error occurred.

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