457(b) plans and SECURE 2.0

[30Rock]

Does anyone know if SECURE 2.0 made changes to EPCRS that can now apply to governmental and non-governmental 457b plans? Thanks!

[Peter Gulia]

For a governmental § 457(b) plan, a cure period and correction method have been in the statute since 1978:

A plan which is established and maintained by an employer which is described in subsection (e)(1)(A) and which is administered in a manner which is inconsistent with the requirements of any of the preceding paragraphs shall be treated as not meeting the requirements of such paragraph as of the 1st plan year beginning more than 180 days after the date of notification by the Secretary of the inconsistency unless the employer corrects the inconsistency before the 1st day of such plan year.  . . . .

Internal Revenue Code of 1986 (26 U.S.C.) § 457(b) (flush language).

https://uscode.house.gov/view.xhtml?req=(title:26%20section:457%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section457)&f=treesort&edition=prelim&num=0&jumpTo=true

[30Rock]

Yes thank you. I thought I heard that additional changes were made by SECURE 2.0?

[Carol V. Calhoun]

The only change made by SECURE 2.0 is that you don't need to contact participants to get the return of overpayments, or to notify them that the overpayment is not eligible for rollover.