The IRS earlier this year issued guidance announcing that it was extending the deadlines for amending retirement plans to reflect the provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Taxpayer Certainty and Disaster Tax Relief Act of 2020. But that doesn’t mean all of them — it does not include non-governmental 457(b) plans.
Notice 2022-33
On Aug. 3, the IRS announced in Notice 2022-33 that it is extending the deadline for amending a retirement plan to reflect the provisions of Section 2203 of the CARES Act, which concerns a waiver of required minimum distributions (RMDs). Under Notice 2022-33, the extended amendment deadline for (1) a qualified retirement plan or 403(b) plan (including an applicable collectively bargained plan) that is not a governmental plan or (2) an IRA now is Dec. 31, 2025.
Notice 2022-33 also extended the deadline for governmental 457(b)s — but not for non-governmental 457(b)s.
Notice 2022-45
On Sept. 26, the IRS announced in Notice 2022-45 that it is extending the deadline by which certain plans must be amended under the CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020.
Under Notice 2022-45, the deadline to amend a plan is Dec. 31, 2025 for (1) most 403(b) plans that are not maintained by a public school and (2) the trust governing an IRA that is an individual retirement account or the contract issued by an insurance company with respect to an IRA that is an individual retirement annuity.
The extensions differ somewhat, however, for 403(b) plans maintained by a public school and a governmental 457(b) plan:
- Plan amendments for a 403(b) plan that is maintained by a public school. For them, the deadline to amend a 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 Dec. 31, 2023.
- The deadline to amend a governmental 457(b) plan is the later of (1) 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 Dec. 31, 2023, or (2) if applicable, the first day of the first plan year beginning more than 180 days after the date of notification by the Secretary that the plan was administered in a manner that is inconsistent with the requirements of Internal Revenue Code Section 457(b).
Non-governmental 457(b)s
The IRS did not list non-governmental 457(b)s among the plans to which Notices 2022-33 and 2022-45 apply.
In its blog, Boutwell Fay points out that the extensions do not apply to 457(b) plans of non-governmental, tax-exempt employers. This means that they still will need to make amendments to their plans to as required by the SECURE Act by the end of 2022.
- Log in to post comments