The IRS recently issued Notice 2022-33 (the "Notice") which extends the deadline for plan sponsors of qualified retirement plans and 403(b) plans to adopt SECURE Act and certain CARES Act amendments from December 31, 2022 until December 31, 2025. Governmental plans previously had until December 31, 2024 to adopt these amendments, but the Notice has extended that deadline as follows:
- For governmental qualified and 403(b) plans, the date for the amendment deadline has been extended to 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.
- For governmental 457(b) plans, the amendment deadline has been extended to the later of (i) 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, or (ii) 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 inconsistent with the requirements of Section 457(b) of the Code.
Even though these deadlines have been extended, plan sponsors need to ensure that their plans are being operated in accordance with the SECURE Act and CARES Act provisions they have implemented, even if the plan document has not yet been amended.
Notably, the amendment deadline for 457(b) plans sponsored by tax-exempt entities (as opposed to governmental 457(b) plans) remains December 31, 2022 (for calendar year plans). The Notice also does not extend the deadline for plan sponsors to adopt CARES Act amendments related to COVID-19 plan loan relief and coronavirus-related distributions. If your plan has implemented any of these CARES Act provisions you may need to take action by December 31, 2022. If you maintain your plan through a pre-approved plan document (protype/volume submitter plan), your plan vendor should be contacting you soon about these amendments. For individually-designed plans, please contact your Dykema attorney for assistance with these amendments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
