The IRS has extended the deadlines for retirement amendments under the CARES and Relief Acts. In response to the COVID-19 pandemic, the Internal Revenue Service (IRS) has released Notice 2022-45 to extend the deadline for plan amendments. The Coronavirus Aid, Relief, and Economic Security (CARES) Act says this is allowed (Pub. L. No. 116-136). Similarly, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Div. EE of Pub. L. No.116-260) authorized extended penalty-free payments to participants impacted by certain disasters. Changes to the timeline for submitting revisions – Deadlines for modifying these provisions are as follows: By the end of 2025, any non-public school private business that provides its employees with a qualified or 403(b) plan would have been forced to implement those adjustments. This time limit applied to both non-bargaining and negotiated plans. The sponsor of a nongovernmental qualifying or 403(b) plan that is not for employees of public schools must alter the plan by December 31, 2025. A sponsor of a governmental qualifying or 457(b) plan or a 403(b) plan for public school workers must alter the plan within 90 days. However, this should be after the legislative body with jurisdiction to amend the plan finishes the third regular legislative session that begins after December 31, 2023. In Notice 2022-33, the IRS issued a similar extension for RMD suspensions in 2020 to reflect the CARES Act. This notice further extended the deadline for amending the provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act (Div. O of Pub. L. No. 116-94) and the Bipartisan American Miners Act (Miners Act) of 2019 (Div. M of Pub.). Anti-cutback relief – The CARES Act provides anti-cutback relief for plan amendments adopted by the applicable date. Notice 2022-45 affirms that CARES Act changes (and any related regulations) enacted by the extended deadline will be eligible for anti-cutback relief. Preapproved plans – Notice 2022-45, unlike the previous extension notice, is ambiguous on whether its extension extends to interim and discretionary revisions to preapproved plans. The current notice states, however, that the IRS anticipates that sponsors will be able to enact revisions to the CARES, SECURE, and Miners acts on the same day. Employers who use preapproved plan paperwork are probably included in this.
Contact Information:
Email: [email protected]
Phone: 9568933225
Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve. In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes. His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.
