IRS Extends Plan Amendment Deadlines for CARES Act Provisions
Deadlines have also been extended to amend plans for certain provisions of the Taxpayer Certainty and Disaster Tax Relief Act.
The IRS has issued Notice 2022-45, extending the deadlines for amending eligible retirement plans, including an individual retirement arrangement or annuity contract, to reflect certain provisions of the Coronavirus Aid, Relief and Economic Security Act and the Taxpayer Certainty and Disaster Tax Relief Act.
For qualified nongovernmental retirement or 403(b) plans, including individual retirement arrangements, the IRS extended to December 31, 2025 the deadline to amend the plan for provisions of section 2202 of the CARES Act, which allows qualified individuals to receive favorable tax treatment from coronavirus-related distributions from eligible retirement plans, and section 302 of the Tax Relief Act, which provides favorable tax treatment to qualified individuals who took qualified disaster distributions from eligible retirement plans. Deadlines for sections of the CARES Act had previously been extended earlier this year.
The plan amendment deadline for CARES Act and Tax Relief Act provisions for a qualified governmental plan 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.
In general, for a 403(b) plan that is not maintained by a public school, the deadline to amend a plan is December 31, 2025. For a 403(b) plan that is maintained by a public school, the deadline 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.
The deadline to amend a governmental plan under section 457(b) of the Internal Revenue Code is the later of 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, or the first day of the first plan year beginning no more than 180 days after the date of the notification by the secretary of labor that the plan was administered in a manner that is inconsistent with the requirements of section 457(b).
The deadline to amend the trust governing an individual retirement account or the contract issued by an insurance company with respect to an individual retirement annuity is December 31, 2025.