September 27, 2022

Volume XII, Number 270


September 26, 2022

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IRS Delays Amendment Deadlines for Major Retirement Legislation

The IRS has issued a notice extending the deadline for retirement plan sponsors to make certain amendments required by recently passed legislation. Notice 2022-33 extends the deadline for amending qualified retirement plans required by:

  • The Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”)

  • The Bipartisan American Miners Act of 2019 (“BAMA”)

  • The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)

Previously, qualified plans were generally required to be amended for these three pieces of legislation by the last day of the first plan year beginning on or after January 1, 2022. This meant the deadline for many plans could be as early as December 31, 2022.  Because the IRS has yet to issue final guidance with respect to some of these legislative provisions, the notice extends the deadline for plan amendments relating to applicable provisions of the SECURE Act, the BAMA, and Section 2203 of the CARES Act until December 31, 2025, for non-governmental qualified plans. Governmental plans are granted further delayed deadlines depending on the underlying circumstances of the plan sponsor. The delayed deadlines under the SECURE Act and the BAMA include relief from the anti-cutback rules, which generally prohibit plan amendments that reduce a participant's accrued benefit.

It is worth noting that the delayed deadlines are generally more generous than the delayed deadlines included in various legislative proposals that are currently circulating through Congress.

Notably, however, the delayed amendment deadline related to the CARES Act under the notice appears to be limited to Section 2203 (related to the waiver of the RMD requirement for 2020). Accordingly, it appears that plan sponsors who chose to amend their plans for coronavirus-related distributions and/or increased loan limits will remain subject to the original deadline with respect to amendments for those provisions.

© 2022 Miller, Canfield, Paddock and Stone PLC National Law Review, Volume XII, Number 220

About this Author

Brian Gallagher Labor & Employment Attorney Miller Canfield Law Firm lansing Michigan
Senior Counsel

As an experienced benefits and executive compensation attorney, Brian Gallagher helps employers navigate the complicated and ever-changing legal landscape of ERISA and the Tax Code. Brian works closely with employers of all sizes in many different industries to design and maintain their benefit plans, ensure compliance and develop practical solutions when mistakes inevitably do occur.

Brian is currently serving as the Treasurer of the Taxation Section of the State Bar of Michigan and previously chaired its Employee Benefits Committee. Named a '...

Samantha A. Kopacz Labor & Employment Attorney Miller, Canfield, Paddock and Stone Troy, MI

Samantha Kopacz's practice centers around the design, implementation and administration of employee benefit plans and executive compensation arrangements. Sam has more than a decade of experience representing employers, trustee boards, group health plans, insurance companies, and third-party administrators in regulatory and compliance issues related to qualified and non-qualified retirement plans, health and welfare plans, fringe benefit plans, and executive compensation and incentive programs.

Sam has extensive experience structuring and advising on defined contribution plans (such...

Samuel L. Parks  Tax Lawyer Employment and Labor Troy, Michigan, Miller Canfield

Samuel Parks is an associate in Miller Canfield's Corporate Group, with a focus on transactional and particularly tax work. He also has experience advising both public and private sector clients on employee benefit issues, including facilitating corrections of plan documentation and operational compliance failures, as well as drafting plan documentation and participant communications. A graduate of the University of Michigan Law School, he has previously worked at the Michigan Supreme Court and the Washtenaw Public Defender's Office.