Anyone Know When President Signing Consolidated Appropriations Act, 2023 (including SECURE 2.0)?

I have read that the President intends to sign the Consolidated Appropriations Act, 2023 (which includes SECURE 2.0) into law. Has anyone read when he intends to do so?

Thanks and Happy holidays to all!

The current continuing resolution expires 12/30/22, so before the CR expires.  While it passed both house and senate, it can take time to get 5000 pages ready for signature.

There is a set of detailed procedures—handled by the Clerk of the House, or the Secretary of the Senate (or both)—for carefully checking and conforming a bill’s text, as affected by all amendments. Once the text is conformed, the bill is printed on parchment. Some certifications about an enrolled bill are signed by the presiding officers of both bodies of Congress. Then, the bill is presented to the President as the Constitution’s Article I, section 7 calls for.

https://archives-democrats-rules.house.gov/archives/lph-enroll.htm

Preparing and signing an enrolled bill can take time, perhaps especially near the end of a Congress (and particularly if a presiding officer is not in or near the District of Columbia).

But because the one week’s continuation of appropriations runs out this week, one imagines H.R. 2617 will be presented this week.

https://www.congress.gov/bill/117th-congress/house-bill/2617

Thanks RatherBeGolfing and Peter! By the way, the following link is the latest version I have, which supposedly includes the amendments adopted by the Senate. On Friday, the House simply adopted this version: "C:\Users\Owner\Documents\Consolidated Appropriations Act 2023 - Final Version Passed by US Senate -- HR 2617.pdf"

When the President signs matters because the soon-to-be Act’s SECURE 2.0 division has twenty provisions with applicability on or just after, or measured from, the date of enactment.

While many provisions apply for a plan year or tax year that begins after some specified date, some provisions first apply in a year’s waning days of December.

If enacted in 2022 would it mean that 401(k) plans could be set up for sole proprietors in 2023 for 2022 on account of this:

Section 317, Retroactive first year elective deferrals for sole proprietors. Under the SECURE Act, an employer may establish a new 401(k) plan after the end of the taxable year, but before the employer’s tax filing date and treat the plan as having been established on the last day of the taxable year. Such plans may be funded by employer contributions up to the employer’s tax filing date. Section 317 allows these plans, when they are sponsored by sole proprietors or singlemember LLCs, to receive employee contributions up to the date of the employee’s tax return filing date for the initial year. Section 317 is effective for plan years beginning after the date of enactment of this Act.

Hiya Drake!

Sorry, but without subsequent IRS guidance, we need to take the statute literally.  "Section 317 is effective for plan years beginning after the date of enactment of this Act." means that for 2023 plans, this rule is in place, and for 2022, we are stuck with putting together a plan and election form before 12/31.

Not in this morning's White House briefing on many bills signed.

On 12/27/2022 at 1:09 PM, drakecohen said:

Section 317 is effective for plan years beginning after the date of enactment of this Act.

I don't know how many sole props would want a short plan year for 2022. For example, if it is signed today, a sole prop would need a short plan year from 12/30/2022 - 12/31/2022 to utilize that provision for 2022. From a practical perspective (depending on the plan's definition of compensation) I don't think it will be useful. As others mentioned, this is really going to be a provision used in 2024 for 2023 plan years. 

We anticipate the President will sign H.R. 2617 on December 30.

Do BenefitsLink mavens think it's possible to establish and maintain a plan year that begins and ends on December 31?

2 hours ago, Peter Gulia said:

Do BenefitsLink mavens think it's possible to establish and maintain a plan year that begins and ends on December 31?

It is probably technically possible, or at least it is too late in the day to think of a reason that would explicitly prohibit it.

That said, it seems like a lot of trouble just to delay the funding deadline of a sole prop.  

Looks like it is signed? https://www.cnn.com/2022/12/29/politics/joe-biden-omnibus/index.html

Internal Revenue Code of 1986 § 401(b)(2)’s new second sentence applies for “an individual who owns the entire interest in an unincorporated trade or business, and who is the only [deemed] employee of such trade or business[.]” I.R.C. § 401(b)(2), as amended by SECURE 2.0 § 317 (emphasis added). And it applies only for a “first plan year.”

“[A] sole proprietor’s compensation is deemed currently available on the last day of the individual’s taxable year[.]”26 C.F.R. § 1.401(k)-1(a)(6)(iii) https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR6f8c3724b50e44d/section-1.401(k)-1#p-1.401(k)-1(a)(6)(iii). Before SECURE 2.0 (and for anyone not described in the new sentence), one must make her cash-or-deferred election by the last day of the year.

With SECURE 2.0, one might make her cash-or-deferred election before the ides of April, and it is deemed made by the preceding year-close—if this is for a first plan year.

Section 401(b)(2)’s new second sentence fits with its first sentence (from SECURE 2019), which provides that an “employer may elect to treat the plan as having been adopted as of the last day of the taxable year” if the employer adopts the plan “before the time prescribed by law for filing the return of the employer for the taxable year (including extensions thereof)[.]” Internal Revenue Code of 1986 § 401(b)(2). (The new sentence about the § 401(k) election is “without regard to any extensions[.]”)

Under SECURE 2.0 § 317(b), the new second sentence added to IRC § 401(b)(2) “shall apply to plan years beginning after” December 29, 2022.

I’ll leave to the BenefitsLink mavens whether a plan year may begin on December 30, 2022 and end on December 31, 2022.

https://www.whitehouse.gov/briefing-room/legislation/2022/12/29/bill-signed-h-r-2617/

What should be the pro-rated limits on a one or two day long plan "year"?  Or, a "plan day" as opposed to plan year!

12 minutes ago, Bri said:

What should be the pro-rated limits on a one or two day long plan "year"?  Or, a "plan day" as opposed to plan year!

415 limit of $334.25? ((2/365)*$61,000)