IRS Clarifies SECURE Acts Plan Amendment Deadlines

Confusion previously existed over the deadline for amending plans to implement provisions set forth in the SECURE Acts--the deadline set forth in Notice 2024-2 (December 31, 2026) or in the IRS required amendments list. The IRS last week clarified that it depends on whether the amendment was mandatory or discretionary. Discretionary amendments will not appear on the required amendments list--by definition. Discretionary amendments must be made by the last day of the calendar year in which they are put into effect. The IRS extended the deadline for SECURE Act discretionary amendments to December 31, 2026. For example, if a plan began allowing participants to designate matching and nonelective contributions as Roth contributions starting in 2023 (a discretionary option post-SECURE), the amendment deadline would be December 31, 2026. For required amendments, the deadline is the last day of the second calendar year following the calendar year in which the amendment is adopted or effective, whichever is later. The IRS expects, for example, that the Roth catch-up required amendments will appear on the 2027 required amendment list (meaning that the deadline for implementing the amendment would be December 31, 2029). For more information on Roth catch-up rules, visit Tax Facts Online. Read More: Link to Q3761.