IRS Form 14568-B – IRS Forms, Instructions, Pubs 2026 – In the complex world of retirement plan compliance, staying on top of IRS requirements is crucial for plan sponsors. One key tool for addressing compliance issues is IRS Form 14568-B, part of the Voluntary Correction Program (VCP). This form helps correct nonamender failures in IRC Section 401(a) plans and failures to adopt a 403(b) plan timely. Whether you’re a plan administrator, employer, or tax professional, understanding this form can prevent costly penalties and ensure your plan remains qualified. In this article, we’ll break down what Form 14568-B is, its purpose, how to use it, and recent updates as of 2026.
What Is IRS Form 14568-B?
IRS Form 14568-B is officially titled “Model VCP Compliance Statement – Schedule 2: Nonamender Failures for IRC 401(a) Plans.” However, it also addresses other nonamender failures and the failure to adopt a 403(b) plan on time. It’s a standardized document provided by the IRS to streamline submissions under the Employee Plans Compliance Resolution System (EPCRS). Plan sponsors use this schedule as an attachment to the main Form 14568, Model VCP Compliance Statement, when voluntarily disclosing and correcting specific plan errors.
This form is essential for employers who discover that their retirement plans haven’t been updated to meet legislative or regulatory changes by required deadlines. By using Form 14568-B, you can retroactively amend your plan and obtain IRS approval, avoiding plan disqualification or other enforcement actions.
Purpose of Form 14568-B in the Voluntary Correction Program (VCP)
The primary purpose of Form 14568-B is to identify and correct “nonamender failures,” which occur when a retirement plan isn’t amended in time to comply with Internal Revenue Code (IRC) requirements under Section 401(b). These failures can jeopardize a plan’s tax-favored status, leading to potential taxes, penalties, or loss of deductions for contributions.
Under the VCP, part of EPCRS, plan sponsors can self-report errors and propose fixes. Form 14568-B specifically targets:
- Failures in pre-approved and individually designed IRC 401(a) plans to adopt amendments from Cumulative Lists or Required Amendments Lists.
- Untimely adoption of a written 403(b) plan, as required by final Treasury Regulations and related notices.
By submitting this form, the IRS treats late amendments as if they were adopted on time for remedial purposes, provided the corrections are completed within 150 days of the compliance statement. This helps maintain the plan’s qualification and allows continued reliance on favorable determination letters or opinion letters.
Types of Failures Covered by Form 14568-B
Form 14568-B categorizes failures into sections for clear identification. Here’s a breakdown based on the form’s structure:
Section I: Identification of Failures
This section lists specific nonamender issues:
- Pre-Approved Plans: Failures to adopt changes from various Cumulative Lists, such as:
- 2004 Cumulative List (by April 30, 2010).
- 2006 Cumulative List (by April 30, 2012).
- 2010 Cumulative List (by April 30, 2016).
- 2012 Cumulative List (by July 31, 2020).
- 2017 Cumulative List (by July 31, 2022).
- Individually Designed Plans: Missed amendments from Cumulative Lists (pre-2017 5-year cycles) or Required Amendments Lists. Sponsors must list each item, including the year, IRS notice reference, and adoption deadline.
- All IRC 401(a) Plans: Amendments required for favorable determination letters or other unspecified late amender failures.
- 403(b) Plan Failures: Specifically, the failure to adopt a written plan timely under IRC Section 403(b) and final regulations. This is corrected by adopting a retroactive written plan.
If failures don’t fit standard checkboxes, attach additional pages labeled accordingly.
Other Common Scenarios
- Errors in SEP or SARSEP plans (though often covered in related Schedule 3).
- Post-2009 403(b) failures eligible for VCP if not under audit.
How to Fill Out IRS Form 14568-B: Step-by-Step Guide?
Filling out Form 14568-B requires precision to ensure IRS approval. Here’s a structured approach:
- Header Information: Enter the plan name, Applicant’s Employer Identification Number (EIN), and plan number on every page, including attachments.
- Section I – Identification of Failures: Check boxes for applicable failures or describe others. For individually designed plans, attach details on missed amendments.
- Section II – Description of Proposed Method of Correction: State that amendments were adopted retroactively to the effective dates. Include copies of signed amendments.
- Section III – Change in Administrative Procedures: Outline steps to prevent future failures, such as implementing annual compliance reviews or consulting tax advisors.
- Section IV – Enclosures: List and attach:
-
- Signed amendments or restated plan documents.
- Prior plan document.
- Most recent determination letter (if applicable).
Submit electronically via Pay.gov with Form 8950 and the main Form 14568. Do not modify the form’s format.
| Section | Key Requirements | Tips for Completion |
|---|---|---|
| I: Identification | List specific missed deadlines and requirements | Use attachments for detailed lists; reference IRS notices |
| II: Correction Method | Describe retroactive amendments | Ensure amendments cover all checked items |
| III: Prevention | Detail procedural changes | Be specific, e.g., “Annual audit by external consultant” |
| IV: Enclosures | Attach supporting docs | Include only relevant, dated materials |
Submission Process and Fees for VCP Using Form 14568-B
To submit:
- Complete Form 8950 via Pay.gov.
- Attach Form 14568 and Schedule 2 (Form 14568-B).
- Pay the VCP user fee, which varies by plan size and failure type (e.g., reduced for certain nonamender issues).
The IRS reviews the submission, may request more info, and issues a compliance statement if approved. Corrections must be completed within 150 days, or longer for governmental plans.
Recent Updates and Changes as of February 2026
As of 2026, EPCRS continues under Revenue Procedure 2021-30, which updated correction principles. Key notes:
- Expanded self-correction options via Revenue Procedure 2019-19.
- Guidance for pre-approved plans, including extensions like Notice 2020-35.
- No major changes to Form 14568-B since its July 2023 revision, but always check IRS.gov for the latest version.
For 403(b) plans, extended remedial periods under Rev. Proc. 2022-40 and similar guidance apply.
Why Use Form 14568-B? Benefits for Plan Sponsors
Using this form proactively through VCP demonstrates good faith and can save significant costs compared to audit discoveries. It preserves tax benefits, avoids Form 1099-R reporting issues for certain failures, and ensures ongoing compliance. Consult a tax professional to assess if VCP is right for your situation.
In summary, IRS Form 14568-B is a vital resource for correcting nonamender failures and 403(b) adoption delays. By addressing issues early, you protect your retirement plan’s integrity and your organization’s financial health. For the latest form, visit the IRS website and download from https://www.irs.gov/pub/irs-pdf/f14568b.pdf.