IRS Updates Operational Compliance List

The IRS recently updated its Operational Compliance List identifying changes in qualification requirements and Internal Revenue Code section 403(b) requirements effective in 2022. The list does not include annual, monthly, or other periodic changes that routinely occur, but is updated periodically by the IRS to reflect new legislation and IRS guidance to help plan sponsors maintain operational compliance.

The following were among the list of items identified as effective in 2022:

• Use of Electronic Medium to Make Participant Elections and Spousal Consents (proposed rule that taxpayers may rely on prior to final rule) (December 2022)
• Guidance Relating to Certain Required Minimum Distributions (RMDs) for 2021 and 2022 (October 2022)
• Extension of Plan Amendment Deadlines Relating to Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Section 2202 and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act) Section 302 (September 2022)
• Extension of Plan Amendment Deadlines Relating to the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), Section 104 of the Bipartisan American Miners Act of 2019 (Miners Act), and Section 2203 of the CARES Act (August 2022)
• Extension of Temporary Relief from the Physical Presence Requirement for Spousal Consents Under Qualified Retirement Plans (May 2022)
• Proposed Regulations Relating to Certain Multiple Employer Plans (MEPs) (March 2022)
• Proposed Regulations Relating to RMDs (February 2022)
• Extension of Temporary Relief from the Physical Presence Requirement for Spousal Consents Under Qualified Retirement Plans (June 2021)
• Final Regulations Relating to Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining RMDs (November 2020)