IRS Extends Remedial Amendment Period for CARES Act and Taxpayer Certainty and Disaster Tax Relief Act
The IRS recently issued Notice 2022-45, extending the deadline for amendments to retirement plans and individual retirement arrangements (IRAs) to adopt selected provisions regarding distributions and loans under the CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).
The notice requires that qualified plans, IRAs and non-governmental 403(b) plans must adopt the related provisions no later than Dec. 31, 2025. The previous deadline for these amendments under Notice 2020-50 and Notice 2020-28 IRB 35 was Dec. 31, 2022.
Governmental 403(b) and 457(b) plans must adopt the provisions no later than 90 days after the close of the third regular legislative session of the lawmaking body with the authority to amend the plan that begins after Dec. 31, 2023. The prior deadline was no later than 90 days after the close of the second such legislative session.
The notice extends the relief from the anti-cutback rules under IRC Sec. 411(d)(6) and ERISA Sec. 204(g) as it pertains to the amendments through the relevant amendment deadline.
A previously issued notice did not extend the remedial amendment period for all provisions relating to the CARES Act. Although the earlier notice extended the deadline to amend for provisions under Section 2203 of the Act regarding the waiver of required minimum distributions, it did not extend the amendment deadline for provisions under Section 2202 regarding coronavirus-related distributions and loans or Section 302 of the Relief Act.