Regulatory and Legislative

IRS Extends Remedial Amendment Period for CARES Act and Taxpayer Certainty and Disaster Tax Relief Act

The IRS issued Notice 2022-45 which extends the deadline for amendments to retirement plans and individual retirement arrangements (IRAs) to adopt some provisions relating to distributions and loans under the CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act). The Notice provides that qualified plans, IRAs, and non-governmental 403(b) plans must be amended to adopt applicable provisions of each act no later than December 31, 2025. The previous deadline for such amendments under Notice 2020-50 and Notice 2020-28 IRB 35 was December 31, 2022.

Governmental 403(b) and 457(b) plans must adopt the provisions no later than 90 days after the close of the third regular legislative session of the lawmaking body with the authority to amend the plan that begins after December 31, 2023. The previous deadline was no later than 90 days after the close of the second such legislative session.

The Notice extends the relief from the anti-cutback rules under IRC Sec. 411(d)(6) and ERISA Sec. 204(g) as it relates to the amendments through the applicable amendment deadline.

A previously issued notice, Notice 2022-33, did not extend the remedial amendment period for all provisions relating to the CARES Act. While that notice extended the deadline to amend for provisions under section 2203 of the act relating to waiver of required minimum distributions, it did not extend such amendment deadline for provisions under section 2202 relating to coronavirus-related distributions and loans or Section 302 of the Relief Act. This notice addresses that discrepancy. 

Regulatory and Legislative

ESG Final Rule Published in Federal Register

ESG Final Rule Published in Federal Register

The DOL’s final rule titled Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights has been published in the Federal Register.