Earlier this year, we shared an update on certain retirement plan updates originally required to be adopted this year. At that time, we noted that some amendment deadlines had been delayed, but other amendments were still required this year. On September 26, 2022, the IRS issued Notice 2022-45, extending the deadline for qualified plans, 403(b) plans, governmental plans and 457(b) plans to adopt plan amendments relating to section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") (to the extent not previously extended by Notice 2022-33 issued on August 3rd, 2022). Notice 2022-45 also extends the deadline relating to section 302 of Title III of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the "Relief Act"). Specific CARES Act provisions affected by the extension relate to coronavirus-related distributions and certain allowable plan loans.
Extended Plan Amendment Deadlines for the CARES Act and Relief Act |
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Non-government qualified plans; 403(b) plans not maintained by public schools; and |
December 31, 2025 |
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Governmental plans |
90 days after the close of the third regular legislative session of the legislative body with authority to amend the plan that begins after December 31, 2023 |
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457(b) governmental plans |
The later of a) 90 days after the close of the third regular legislative session of the legislative body with authority to amend the plan that begins after December 31, 2023, or b) if applicable, the first day of the first plan year beginning more than 180 days after the date of notification by the IRS that the plan was administered in a manner inconsistent with the requirements of Section 457(b) |
Although the deadline to adopt these has been extended, we recommend plan sponsors take a close look at these provisions before year-end. These law changes (and the changes described in Notice 2022-33) have been in effect since 2020. While plan sponsors may have additional time to adopt amendments describing changes required by the CARES Act and the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”), plan sponsors should already be operating their plans in accordance with the CARES Act and the SECURE Act.
For more information about the extended deadlines set forth in Notice 2022-33, please read our earlier blog, “IRS Extends Deadline for Certain Required Amendments to Retirement Plans and IRAs.”
This article was written for general informational purposes and summarizes tax and employee benefits laws. As such, it should not be relied upon for compliance with the Internal Revenue Code or ERISA.
Should you have questions about required plan amendments, please contact your BrownWinick attorney or one of our employee benefits attorneys, as listed below: