On September 26, 2022, the IRS issued Notice 2022-45, which extends the deadlines for amending a retirement plan or individual retirement arrangement (IRA) to reflect certain provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Disaster Tax Relief Act) (enacted as Division EE of the Consolidated Appropriations Act, 2021 (CAA-21). Under Notice 2022-45, the extended amendment deadline for a qualified retirement plan that is not a governmental plan for the CARES Act and Disaster Tax Relief Act is December 31, 2025. December 31, 2025, is also the deadline for amending plans to reflect certain other provisions of the CARES Act and the SECURE Act.
Relief Under the CARES Act and CAA-21
Section 2202 of the CARES Act allows coronavirus-related distributions of up to $100,000 from qualified retirement plans. Plan amendments for the coronavirus-related distribution changes are due the last day of the first plan year beginning on or after January 1, 2022, as long as the plan operates as if the amendment is in effect. For governmental plans, the due date is the last day of the first plan year beginning on or after January 1, 2024.
Under Section 302 of the Disaster Tax Relief Act, plans may offer special disaster relief to participants affected by disasters declared between January 1, 2020, and February 25, 2021. This relief includes qualified disaster distributions, suspension of loan repayments, and higher limits for loans. Plan amendments for the disaster relief are due the last day of the first plan year beginning on or after January 1, 2022. For governmental plans, the due date is the last day of the first plan year beginning on or after January 1, 2024.
Notice 2022-45 Extends Plan Amendment Deadlines
Notice 2022-45 extends the deadline by which plan sponsors must amend their plans to reflect Section 2202 of the CARES Act, Section 302 of the Disaster Tax Relief Act, or the regulations thereunder until December 31, 2025.
Qualified Plans
Under Notice 2022-45, the new deadline to amend a qualified retirement plan that is not a governmental plan is December 31, 2025. The deadline to amend a qualified governmental retirement plan (within the meaning of Code Section 414(d)) is 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.
Section 403(b) Plans
In general, the deadline to amend a 403(b) plan that is not maintained by a public school is December 31, 2025. The deadline to amend a 403(b) plan that is maintained by a public school is 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.
Section 457(b) Plans
The deadline to amend a governmental retirement plan under Code Section 457(b) is the later of:
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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.
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If applicable, the first day of the first plan year beginning more than 180 days after the date of notification by the Secretary of Treasury that the plan was administered in a manner that is inconsistent with the requirements of Section 457(b).
IRAs
The deadline to amend the trust governing an IRA that is an individual retirement account or the contract issued by an insurance company with respect to an IRA that is an individual retirement annuity is December 31, 2025.