As we previously reported, on August 3, 2022, the Internal Revenue Service (“IRS”) issued Notice 2022-33 (Notice), for amending a retirement plan or individual retirement arrangement (IRA) to reflect specific provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Bipartisan American Miners Act of 2019 (Miners Act), and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). At that time, the Notice did not extend the deadline to amend plans to reflect use of expanded distribution access and plan loan relief permitted by the CARES Act. To address this oversight, the IRS has issued Notice 2022-45.
The key provisions covered by Notice 2022-45 are:
- Increased loan limits (to $100,000 from $50,000) during 2020;
- COVID-related in-service distributions during 2020; and
- Temporary suspension of 2020 loan repayments or additional time for loan repayments.
As a result, all changes under the CARES Act, Miners Act and SECURE Act have the same plan amendment deadlines of December 31, 2025 for non-governmental plans. Governmental plans generally have until 90 days after the end of the third regular legislative session beginning after December 31, 2023.
Next Steps for Employers
Employers should review the applicable IRS notices to ensure that they are administering their retirement plans in accordance with applicable law. Employers who allowed participants to take advantage of these provisions must ensure that they amend their qualified retirement plan in a timely manner.