business IRS Extends Plan Amendment Deadlines under the SECURE Act and CARES Act August 29, 2022 Attention plan sponsors…the IRS has extended plan amendment deadlines under the SECURE Act, CARES Act and Miners Act. Here’s what you should know. Under Notice 2022-33, the IRS has extended the deadlines for amending a retirement plan or individual retirement account. How will this impact you? We share some insight here. What is the deadline? The notice extends SECURE Act amendment deadlines as follows: For non-governmental qualified plans and 403(b) plans (not maintained by a public school), the deadline is extended to December 31, 2025. Previously, this deadline was generally by December 31, 2022. Note the extended deadline plan is for calendar and non-calendar plan year ends.Governmental plans including 457(b) plans and 403(b) plans (maintained by a public school) have 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after December 31, 2023. Some key provisions that are impacted Automatic enrollment safe harbor contribution limit from 10 % to 15%Increase in required minimum distributions (RMD) age from 70 ½ to 72 and change in the rules for RMDs to beneficiariesQualified birth or adoption distributions up to $5,000 without penaltiesParticipation of part-time workers in 401(k) plans *Note that the deadline for CARES Act special COVID relief of loan and in-service withdrawals remains by the end of the first plan year beginning on or after January 1, 2022 (deadline of December 31, 2022 for calendar year non-governmental plans). Why is this a welcome change? Many plan sponsors are still awaiting final IRS rules on certain aspects of the SECURE Act, including whether or not long-term and part-time employees are included and clarification on post-death RMD rules…so this extension is welcome news. What do plan sponsors need to do in the meantime? Prior to the amendment deadline, affected plans will need to ensure operational compliance with the law changes. Don’t wait—you run the risk for compliance errors. Work with your third-party administrator or ERISA counsel to ensure your plans are up to date with all required amendments. Questions? We can help! Contact us.
