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Retirement plan amendment deadlines extended

August 3, 2022

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Authored By RSM US LLP

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GreerWalker is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries. Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources. For more information on how GreerWalker can assist you, please call (704) 377-0239.

On Aug. 3, 2022, the IRS issued Notice 2022-33, which outlined changes to the due dates for plan amendments resulting from the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Coronavirus Aid, Relief, and Economic Security (CARES Act) and the Bipartisan American Miners Act of 2019 (Miners Act). Plan sponsors now have additional time to coordinate with their legal counsel and third-party administrators to incorporate the necessary amendments to plan documents required by these Acts.

With the issuance of Notice 2022-33 on Aug. 3, 2022, the IRS heeded pleas for an extension of time to incorporate certain legislative amendments resulting from the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Coronavirus Aid, Relief, and Economic Security (CARES Act) and the Bipartisan American Miners Act of 2019 (Miners Act). Plan sponsors of non-governmental qualified retirement plans originally had until the last day of the plan year beginning on or after Jan. 1, 2022 in order to amend their plan documents to reflect the operational changes from these acts (IRAs, governmental plans, and 403(b) plans maintained by public schools had different due dates).

Specifically, the amendments were necessary to reflect the updated operations of the plan to comply with:

  1. All provisions of the SECURE Act,
  2. Section 104(a) of the Miners Act, which amended the minimum age for in-service withdrawals from a defined benefit pension plan from age 62 to age 59½, and
  3. Section 2203(a) of the CARES Act, which provided a waiver of required minimum distributions for defined contribution plans and IRAs for the 2020 plan year. 

Note: The extended amendment deadline does not apply to the loan and withdrawal provisions under the CARES Act. As of now, plans that applied the coronavirus-related provisions must still be amended by the last day of the first plan year beginning on or after Jan. 1, 2022 (2024 for governmental plans).

In general, plan sponsors of non-governmental qualified retirement plans (excluding 403(b) plans maintained by public schools) and IRAs now have until Dec. 31, 2025 to incorporate the necessary amendments. Other plans, such as governmental retirement plans, have later extended deadlines. This relief is valuable for plan sponsors who have been waiting on additional guidance from the IRS on several issues addressed in the SECURE Act.


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This article was written by Lauren Sanchez, Christy Fillingame and originally appeared on 2022-08-03.
2022 RSM US LLP. All rights reserved.
https://rsmus.com/insights/tax-alerts/2022/late-filing-penalties-may-apply-when-efile-mandate-not-met.html

The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. The RSM(tm) brandmark is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

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GreerWalker is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries. Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources. For more information on how GreerWalker can assist you, please call (704) 377-0239.

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