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October 2022: IRS Extends CARES Act Amendment Due Dates

18 Oct

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Update Applicable to:
All employers with government-provided retirement plans.

What happened?
In our previous communication here, we notified you that on August 3, 2022, the Internal Revenue Service (“IRS”) published Notice 2022-33, announcing the extension of the deadline for the specific Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”), Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), and Further Consolidated Appropriations Act (“CAA”) or Bipartisan Miners Act non-governmental qualified retirement plan amendments until December 31, 2025. This is an update to that communication.

What are the details?
On Sept. 26, the Internal Revenue Service (“IRS”) published Notice 2022-45, extending the deadline for adopting amendments to conform qualified retirement plans and 403(b) plans for COVID relief provided by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The new due date for CARES Act amendments is Dec. 31, 2025 (although certain governmental plans have a different due date discussed below). Coming shortly after Notice 2022-33 (see the previous alert here), sponsors of qualified retirement plans and 403(b) plans now have until 2025 to amend plan documents to reflect applicable provisions of the Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”), the CARES Act, and the Further Consolidated Appropriations Act or Bipartisan Miners Act (“CAA” or “Miners Act”). Importantly, however, compliance with the current requirements of the above-referenced legislation has not been delayed by either IRS notice.

What Does Notice 2022-45 Cover?
Notice 2022-45 provides an extension for the qualified plan, and 403(b) plan amendments are required to comply with the CARES Act provisions that were otherwise required by the end of 2022 (and not extended under Notice 2022-33). Among the most prominent provisions covered by Notice 2022-45 are the following:

  • 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.

When Notice 2022-33 and Notice 2022-45 are combined, Dec. 31, 2025, is now the due date for non-governmental qualified retirement plans and 403(b) plans to be amended to reflect the requirements of the SECURE Act, CARES Act, and CAA. Governmental plans generally have until 90 days after the end of the third regular legislative session beginning after Dec. 31, 2023.

For more information, please see the links below:

Notice 2022-33

Notice 2022-45

Previous Vensure Communication (9/13/2022)

Article

What do employers need to do?
Employers should review the links above and take advantage of the extended dates.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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