IRS Extends The Deadlines For Retirement Amendments Under The CARES And Relief Acts.

This most recent notice, which extends the deadline for the majority of 401(k) amendments until the end of 2025, has an impact on CARES and Relief Act elements that were not covered by earlier deadline extensions.

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, as well as the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020, have both delayed the Internal Revenue Service’s deadlines for amending qualifying retirement plans (including IRAs and annuity contracts).

The previous deadline for such adjustments was December 31, 2022, according to Notice 2022-45, “the extended amendment deadline applicable to (1) a qualified retirement plan or section 403(b) plan that is not a governmental plan or (2) an IRA is December 31, 2025.”

Furthermore, the provisions must be adopted by governmental 403(b) and 457(b) plans no later than 90 days following the conclusion of the third regular legislative session of the legislative body with the power to alter the plan that commences after December 31, 2023. The previous cutoff was 90 days following the conclusion of the second such legislative session.

The extensions specifically include Section 2202 of the CARES Act, which offers participants loan relief and COVID-related payouts, and Section 302 of Title III of the Relief Act, which establishes special procedures for the use of retirement funds in the event of a disaster.

The remedial amendment period for all CARES Act provisions was not extended by a prior notice, Notice 2022-33, according to the financial services company Ascensus. While that notice extended the deadline for amending the provisions under section 2203 of the act relating to the waiver of required minimum distributions, it did not extend the deadline for amending the provisions under section 2202 relating to distributions and loans related to the coronavirus or Section 302 of the Relief Act. This notification clarifies that inconsistency.

Source: https://www.benefitspro.com/2022/10/04/irs-extends-retirement-amendment-deadlines-under-cares-disaster-relief-acts/