What Is the Deadline for Amending a Nongovernmental 457(b) Plan?

Q: We are a private, tax-exempt organization that sponsors a 457(b) plan for key executives, in addition to our 403(b) plan. A little birdie told us that our nongovernmental 457(b) plan is required to be amended by the end of this year to comply with the SECURE 2.0 Act of 2022. Is that true?

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

A: Your little birdie is likely correct! Though Notice 2024-2 extended the amendment deadline for other plan types to meet SECURE 2.0 specifications, it did not address nongovernmental 457(b) plans. As a result, many plan sponsors have decided to amend their plans on or before the last day of the 2025 plan year (December 31, 2025, for calendar year plans).

With this deadline less than two months away, you would need to work quickly with your document provider if you decide to take the same approach. Note that this applies ONLY to nongovernmental 457(b) plans; Notice 2024-2 clearly extended the deadline for governmental 457(b) plans.

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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