What Is an Interim Amendment?

Q. What is an interim amendment?

A. An interim amendment addresses a disqualifying plan provision that results in the failure to satisfy the qualification requirements by reason of a change in those requirements. An interim amendment modifies a plan’s terms to reflect a change in law, regulations or guidance or a change integral to a qualification requirement change. 

The hardship distribution final regulations the IRS issued in 2021 are an example of a change integral to a qualification requirement change. Adding expenses relating to federally declared disasters to a plan’s list of permitted safe harbor expenses, as the final regulations permit, would not cause a plan to fail to satisfy the qualification requirements.