The Times They’re A-Changin’…IRS Provides Additional Retirement Plan Amendment Delay Relief | Holland & Hart – The Benefit Dial

The IRS picked up where it left off last month with further extensions to the pension plan amendment deadline. As you may recall from our August 5, 2022 blog post, Time Is On My Side: Some Retirement Plan Amendment Deadlines Pushed Back, the IRS recently extended certain deadlines for amending the SECURE Act, the Miner’s Act and the CARES Act for pension plans, but notably did not extend the deadline for coronavirus-related distributions and Loan Plan loan relief under the CARES Act. Although it is unclear whether these omissions were intentional or an oversight, the IRS made this matter moot in IRS Notice 2022-45.

Notice 2022-45 provides that plan sponsors who have elected to offer coronavirus-related distributions, loan repayment deferrals and maximum loan amount increases in 2020 under the CARES Act generally have up to December 31, 2025 to amend their plan documents to conform. plan operations. Prior to this time extension, plans generally had to be changed by the end of 2022.

The notice also extends the deadline for amending plans that have elected to adopt certain disaster relief provisions under the Consolidated Appropriations Act (CAA) 2021. These provisions were for disaster-related distributions and loan relief similar to the above CARES Act provisions for major disasters occurring between January 1, 2020 and February 25, 2021. Like the CARES Act deadline extensions, the deadlines for formally adopting the qualified disaster relief amendments were generally extended from December 31, 2022 to December 31, 2025.

With these time extensions, plan sponsors will be able to amend their pension plans at the same time for all SECURE Act, CARES Act and CAA changes. Note that the time extensions discussed above in the notice apply to qualified non-government plans (e.g., 401(k) plans), 403(b) plans that are not run by public schools, and the IRAs. Different timelines apply to government plans.

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