How Does the IRS Deadline for SECURE 2.0 Amendments Work?

Q: In a recent Ask the Experts column, the Experts wrote that the deadline to adopt both (1) a Cycle 2 403(b) preapproved plan and (2) any applicable amendments to a non-governmental/non-collectively bargained 403(b) plan for SECURE 2.0 is December 31, 2026. But I thought that the IRS extended the deadline for SECURE 2.0 Act of 2022 amendments recently–is that correct?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: After the publication of our column, the IRS clarified that some, but not all, SECURE 2.0 amendments can be adopted after December 31, 2026. The reason for this is that deadlines for required plan amendments are tied to the applicable remedial amendment period. In general, the remedial amendment period for required amendments ends on the last day of the second calendar year following the calendar year in which the amendment becomes effective or is adopted, whichever is later.

For a required amendment arising from a change in qualification requirements, however, the remedial amendment period generally does not expire until the last day of the second calendar year following the year in which the applicable change appears on the IRS’ annual Required Amendments List. In some cases, that date is indeed later than December 31, 2026.

For details, check out this PLANSPONSOR article.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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