IRS Extends CARES Act Deadlines for Amending Retirement Plans

Published September 27, 2022

The Internal Revenue Service (IRS) released Notice 2022-45 extending the deadline for amending eligible retirement plans for a coronavirus-related distribution or qualified disaster distribution in relation to Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and Section 302 of Title III of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, which was enacted by the Consolidated Appropriations Act, 2021 (CAA). The extended amendment deadline is December 31, 2025, and is applicable to a qualified retirement plan, section 403(b) plan that is not a governmental plan, or an individual retirement account (IRA).

The extensions under Notice 2022-45 are:
  • Qualified Plans - For a qualified plan that is not a governmental plan under IRC Section 414(d), the deadline to amend a plan is Dec. 31, 2025. The plan amendment deadline for a qualified governmental plan under Section 414(d) 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.
  • 403(b) Plans - For a 403(b) plan that a public school does not maintain, the deadline to amend a plan is Dec. 31, 2025. The plan amendment deadline for a 403(b) plan that a public school maintains 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.
  • 457(b) Plans - 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 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 Treasury Secretary that the plan was administered in a manner that is inconsistent with the requirements of Section 457(b).
  • IRAs - The deadline to amend the trust governing an IRA that is an individual retirement account or the contract issued by an insurance company concerning an IRA that is an individual retirement annuity is Dec. 31, 2025.
  • Anti-cutback Relief - Amendments to an eligible retirement plan (including an annuity contract) to reflect a provision of Section 2202 that is made on or before the dates as extended under Notice 2022-45 will not cause the plan to fail to satisfy the anti-cutback requirements of IRC Section 411(d)(6) or Section 204(g) of ERISA because of the amendments.

Section 2202(c) of the CARES Act provided that an eligible retirement plan will not be treated as failing to operate in accordance with its terms merely because the plan implements the provisions of Section 2202 if the plan is amended within the period that begins on the date that Section 2202 takes effect, and ends on or before the earlier of:
  • the date the amendment is adopted, or
  • the last day of the first plan year beginning on or after January 1, 2022 (or January 1, 2024, in the case of a governmental plan under Internal Revenue Code (IRC) Section 414(d), or a later date prescribed by the Treasury Secretary.