December 1, 2022

Volume XII, Number 335

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Clarification on Extension of Amendment Deadlines for CARES Act Provisions

On September 26, 2022, the IRS released IRS Notice 2022-45, which corrected a potential oversight in IRS Notice 2022-33, discussed in detail here.  Notice 2022-33 had extended the deadline to adopt certain retirement and savings plan amendments required by the Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”) and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) from December 31, 2022 to December 31, 2025, but the extension did not apply for certain CARES Act provisions, including: penalty-free coronavirus-related distributions, increasing the permissible loan amount, and delaying repayment of loan amounts.

Notice 2022-45 rectifies this inconsistency, deferring the deadline to adopt changes covered by Section 2202 of the CARES Act—i.e., penalty-free coronavirus-related distributions, increasing the permissible loan amount, and delaying repayment of loan amounts—from December 31, 2022 to December 31, 2025.  In addition, Notice 2022-45 similarly extends the deadline for adopting qualified disaster distribution provisions pursuant to the Taxpayer Certainty and Disaster Tax Relief Act (“Relief Act”).  The notice explains that the purpose of this clarification was to ensure that all amendments required by the SECURE, CARES, and Relief Acts can be adopted in a single amendment.

This clarification is welcome for many plan administrators and sponsors as it eliminates confusion from some amendments being deferred but others being due this year.

© 2022 Proskauer Rose LLP. National Law Review, Volume XII, Number 271
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About this Author

Justin Alex, Employment Attorney, Proskauer Rose Law Firm
Associate

Justin Alex is an Associate in the Washington, DC office and a member of the Employee Benefits, Executive Compensation & ERISA Litigation Practice Center.

202.416.6816
Mary Grace Richardson Labor and Employment Attorney Proskauer New Orleans
Associate

Mary Grace Richardson is an associate in the Labor & Employment Department and a member of the Employee Benefits & Executive Compensation Group. She counsels clients on a myriad of issues related to employee retirement and health plans.

Mary Grace received her J.D. and diploma in comparative law, summa cum laude, from Louisiana State University Paul M. Hebert Law School. At LSU, she served as a senior editor of the Louisiana Law Review, was a member of the Board of Advocates, and was a member of the Order of the Coif....

504-310-4086
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