Continuing to Navigate the Regulatory Maze: Is Your Business Prepared for the Latest Retirement Plan Compliance Updates?

Enterprise Iron Financial Industry Solutions, Inc.

Our Compliance Team continues to stay well-informed in the constantly evolving regulatory landscape and impacts of the SECURE Act 2.0, encompassing both mandatory and discretionary amendments. Ask yourself, is your business equipped to navigate and comply with the forthcoming required amendments?

To assist you in these mandatory changes, we have compiled a comprehensive guide outlining the multitude regulatory plan document amendments and restatement deadlines. Spanning from 2025 through 2029, these deadlines necessitate meticulous preparation and organization to ensure timely compliance.

Published April 22, 2024

Margie Brown, Principal Consultant

Managing these crucial deadlines can be intimidating, which is why we have curated a list of key regulatory amendment dates and deadlines below. It’s important to note that the IRS may issue extensions or introduce unexpected regulations, adding further complexity to the maintaining regulatory compliance.

February 1, 2024 – January 31, 2025: The Cycle 4 (6-Year Cycle) Defined Contribution Qualified Pre-Approved Plan submission deadline when the IRS will accept the Cycle 4 pre-approved documents. The following notice lists the 2023 Cumulative List of Changes to be included in the Cycle 4 Pre-Approved plan: Notice 2024-3.

It takes 2 years for the IRS to review and issue opinion letters. The Cycle 4 Defined Contribution Qualified Pre-approved plan restatement period is projected to start early 2027 with a deadline sometime in early 2029.

March 31, 2025: Last day to adopt the Cycle 3 Pre-Approved Define Benefit plan with items on the 2020 Cumulative list in: Announcement 2023-6.

January 1, 2025 – December 31, 2026: The anticipated restatement window (refer to Q5 section in the IRS Q&A) to adopt a Cycle 2 Pre-Approved 403(b) plan with the 2022 Cumulative List of Changes. You can find the 2022 Cumulative List of Changes in: Notice 2022-8.

Below is a list of deadlines to amend plan documents with the mandatory and/or discretionary amendments that apply to SECURE 2.0, as well as the SECURE Act, Cares Act, 2020 Disaster Act, and Miner’s Act regulations.

The IRS issued the following notice with guidance on 12 provisions which includes §501 of the SECURE 2.0 ACT extending the deadline to amend plans for these required and discretionary provisions. See J. §501 for the extended deadlines in: Notice 2024-2.

December 31, 2025 for calendar year plans: Deadline for tax-exempt 457(b) plans. The IRS did not provide an extension for tax-exempt 457(b) plans, the deadline remains by the last day of the plan year beginning on or after January 1, 2025.

December 31, 2026: Deadline for qualified plans in general and 403(b) plans in general (regardless of plan year-end).

December 31, 2028: Deadline for union qualified plans and tax-exempt union 403(b) plans (plans under a CBA ratified before December 29, 2022).

December 31, 2029: Deadline for governmental qualified plans, public school 403(b) plans, and governmental 457(b) plans. Or, if applicable to a governmental 457(b) plan, the first day of the first plan year beginning more than 180 days after the date of IRS notification of a plan failure.

Note: Terminating plans will need to be amended for any changes that were effective prior to termination.

Fueling Engaging Industry Conversations: The Latest Buzzworthy Topics for Happy Hour Chats!

Terminally Ill Individual Distribution (TIIDs), Emergency Personal Expense Distribution (EPEDs), and Pension Linked Emergency Savings Account (PLESAs), oh my! Not only are these adding to a long list of strange acronyms, administering them in a plan may bring on more complexity that can be easily overlooked. In the tables that follow, you will find a brief overview of these complex provisions.

Our Retirement Plan Compliance Services (RPCS) are here to streamline administration by handling the heavy lifting for you!

The skilled professionals on our team are poised to conduct audits of affected plans, ensure that systems are prepared and processes are streamlined, optimize client communications, and make sure that your staff is trained and ready to meet deadlines…

All while ensuring SUCCESSFUL OUTCOMES!

Lauren Leneis, Director of Compliance Services

The materials contained herein is general and prepared for informational purposes only and shall not be construed as constituting legal or tax advice. Tax laws and regulations are complex, and some content is subject to interpretation of the law and subject to change as further regulatory guidance is published. Please consult your own independent attorney or tax professional regarding your specific situation.