Under section 302(d) of the Relief Act, 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 302, or any regulations thereunder, if the plan is amended within a prescribed time period and the amendment applies retroactively to the beginning of the period. The period begins on the date that section 302 (or any regulation thereunder) takes effect, and ends on or before the earlier of (1) the date the amendment is adopted, or (2) 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 within the meaning of section 414(d) of the Code), or a later date prescribed by the Secretary.
III. EXTENSION OF PLAN AMENDMENT DEADLINES; ANTI-CUTBACK RELIEF
- A. Extension of plan amendment deadlines
Pursuant to the authority of the Secretary under section 2202(c) of the CARES Act and section 302 of the Relief Act, the deadlines for amending an eligible retirement plan (including an IRA or annuity contract) to reflect the provisions of section 2202 of the CARES Act or section 302 of the Relief Act, or any regulations thereunder, are hereby extended as follows:
- (1) Qualified plans
In general, for a qualified plan that is not a governmental plan within the meaning of section 414(d) of the Code, the deadline to amend a plan is December 31, 2025. The plan amendment deadline for a qualified governmental plan, within the meaning of 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 December 31, 2023.
- (2) Section 403(b) plans
In general, for a section 403(b) plan that is not maintained by a public school, as described in section 403(b)(1)(A)(ii), the deadline to amend a plan is December 31, 2025. The plan amendment deadline for a section 403(b) plan that is maintained by a public school, as described in section 403(b)(1)(A)(ii), 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 December 31, 2023.
- (3) Section 457(b) plans
The deadline to amend a governmental plan under section 457(b) of the Code is the later of (1) 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 December 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 Secretary that the plan was administered in a manner that is inconsistent with the requirements of section 457(b) of the Code.
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