We are strategically sailing closer to the deadline required for amending plan documents with the treasure chest of optional and mandatory regulatory provisions. Thorough reparation can help alleviate stress caused by the overwhelming legislative changes and staggering regulatory plan amendment deadlines. To add more complexity, we need to be prepared for the fast approaching Cycle 4 Restatement under the IRS’s pre-approved plan restatement program.
Are you currently positioned with enough staff? Do you have operational checklists, and processes in place to implement and administer these plan document amendments to seamlessly transition your plan sponsors, recordkeepers, consultants, and advisors?
Published July 22, 2024
Margie Brown, Principal Consultant
We are here to work together with you to plan ahead and ensure you meet important deadlines, so there’s no need to send out an S.O.S in the final hour. Enterprise Iron’s Retirement Plan Compliance Services (RPCS) takes the burden off your shoulders with tailored solutions that meet all your compliance needs! The IRS in Notice 2024-2 extended the deadlines for plan documents to formally adopt required and discretionary amendments with the broad range of legislative changes.
These required and discretionary amendments are a result of provisions in the following Acts:
• Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019
• SECURE 2.0 Act of 2022
• Bipartisan American Miners Act of 2019 (Miners Act)
• Coronavirus Aid, Relief, and Economic Security (CARES) Act
• Taxpayer Certainty and Disaster Tax Relief Act of 2020
Until a plan formally adopts these amendments, recordkeepers, plan sponsors, consultants, and advisors must diligently keep track of all elected discretionary and mandatory amendments, along with the effective dates, to ensure they are in compliance with relevant provisions. The table below outlines the deadlines to formally adopt these required and discretionary amendments.
Let us take a moment and keep on a back burner some future SECURE 2.0 Act provisions below!
Preparing for some SECURE 2.0 Act provisions effective in 2025:
A glance below at a few provisions effective in 2026:
A glimpse further into the future with a complex provision which is currently bringing many conversions to the table that becomes effective in 2027:
We are not done yet with staggered effective dates! Let us not forget about the upcoming Cycle 4 Defined Contribution Qualified pre-approved document restatement on the horizon.
A brief glimpse of Defined Benefit (DB) and 403(b) restatements below:
Taking time to reflect on steps required for success
Due to the many legislative changes in the retirement plan industry with staggered effectives dates, we need to carefully orchestrate the process to design an effective process for a successful outcome. Here are a few questions to consider:
Do you have a streamlined process to track what optional provisions your plan sponsors elected and the applicable effective date of the elected provision for each plan? Are you prepared to externally and internally communicate the process and steps required to amend plan documents? Do you have the staffing model to handle the additional workflow and volume required to successfully implement these amendments and meet regulatory deadlines?
The key is to stay on top of any mandatory changes and effective dates, and to document any optional provisions elected as well as the effective date of the elected provision. Our RPCS team is highly-skilled and can assist you with:
• Tailored solutions to suit your needs
• C² Compliance Calculator (minimum distribution rules)
• Plan Document Services
• Government Form Filling
• Audit & Operation Support
• Compliance Testing
Contact:
Lauren Leneis, Director of Compliance Services
compliance@enterpriseiron.com
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.