Erisapedia webcast yesterday on CARES/SECURE Amendments

For anyone who watched it (good webcast if you didn't) - at one point my attention got diverted for a couple of minutes by an e-mail popping up. When I dragged my attention back to the webcast, I THOUGHT I heard them say that for a tax-exempt 457(b), a SECURE amendment was due by 12/31/2022. Did they say that?

Beyond Belgarath’s request for help about when to do a plan amendment:

What tax-law change in SECURE requires or permits an amendment of a nongovernmental tax-exempt organization’s § 457(b) plan?

As I read the December 2019 changes to Internal Revenue Code of 1986 § 457(d), all those changes refer to a plan maintained by a governmental employer.

Does SECURE include other tax-law changes that could affect a nongovernmental tax-exempt organization’s § 457(b) plan?

I believe the timing is correct. Notice 2022-33 did not extend the deadline for a non-governmental 457(b) plan, so it should still be governed by the SECURE Act's statutory deadline.

I think there is a (perceived) lack of clarity on whether the SECURE Act's 10-year RMD rule applies to non-governmental 457(b) plans, but I am fairly certain the age 72 RMD rules apply. If the non-governmental 457(b) plan document includes those rules in the plan document, I would think it would need to be amended for SECURE. 

The remaining SECURE provisions, and all of the CARES Act provisions, do not apply to non-governmental 457(b) plans.

1 hour ago, Belgarath said:

For anyone who watched it (good webcast if you didn't) - at one point my attention got diverted for a couple of minutes by an e-mail popping up. When I dragged my attention back to the webcast, I THOUGHT I heard them say that for a tax-exempt 457(b), a SECURE amendment was due by 12/31/2022. Did they say that?

Here's the webcast recording: https://storage.googleapis.com/erisapediawebcastscert/2022-08-30/Web2022_08_30HOTDOG.mp4

And the slides:  http://www.erisapedia.com/webcasts/getWebcastDetails?Action=getFile&File=SlideThreeFile&ID=115

Thanks Lois!

P.S. - for me, at least, the slides link isn't working. Doesn't matter, because I'm sure they will be posting them shortly for anyone who attended the webcast. But the webcast recording itself is working, so when I have time, I'll be able to go back and listen to the part in question. Thanks again.

EBECatty, thank you for your smart catch.

It didn’t occur to me that a § 457(b) plan’s sponsor might have stated a plan’s required beginning date, required distribution period, or other minimum-distribution provision other than by reference to the Internal Revenue Code sections.

Unless my client intends a provision more restrictive than what’s needed to get (or that allows less than what’s permitted within) eligible-plan tax treatment, I write some provisions of a § 457(b) plan using Code-sprinkling. For example, a document’s definition for “Required Beginning Date” might state it “Has the meaning given by IRC § 401(a)(9), including any special rules under those provisions.” Likewise, a provision about how much must be distributed to a participant or beneficiary might refer to § 401(a)(9) and § 457(d)(2).