News Archive

"Sponsors will need to amend plan documents implementing the Roth catch-up rule no later than December 31, 2026 ... With respect to safe harbor 401(k) plans, the IRS indicated that a midyear plan amendment implementing this feature does not constitute a prohibited midyear change that would jeopardize safe harbor status."  MORE >>

"The most immediate operational problem is for 401(k), 403(b) and other DC plans that allow catch-up contributions.... Sponsors of tax-exempt governmental plans must make their changes by December 31, 2025, regardless of plan year. The Roth catch-up rule applies on a calendar-year basis, regardless of your plan year. Consequently, operational changes are needed by January 1, 2026 for all affected plans."  MORE >>

"In 2022, employers were required to amend T-E 457(b) Plans to reflect changes to the required minimum distribution (RMD) rules made by the SECURE Act of 2019, known as SECURE 1.0, including the increase in a participant’s required beginning date (RBD) to age 72.... SECURE 2.0 made additional changes to the RMD rules[.]"  MORE >>

"Tax-exempt sponsors must amend 457(b) plans by the December 31, 2025, deadline to comply with SECURE Act and SECURE 2.0 -- no extensions apply. RMD age increases, beneficiary rules, and automatic cash-out maximums may require updates; sponsors should align documents and operations now to avoid issues."  MORE >>

"The deadline by which a plan sponsor must amend its retirement plans depends on the plan type. Here’s a list of the current amendment deadlines by plan type."  MORE >>

"Even if not yet required, plan sponsors may wish to amend their plans this year for certain changes that are already in effect, or to reflect changes that will take effect in 2026. Plan sponsors that wait until the legal deadline to amend their plans for SECURE Act, CARES Act, and SECURE 2.0 changes should keep a running list of the effective dates for any optional provisions, as they may have gone into effect several years before the legal amendment deadline."  MORE >>

"This year, the 'biggest' action item for plan sponsors is deciding how to handle the mandatory Roth catch-up provision of the SECURE 2.0 Act of 2022 ... The second biggest consideration ... concerns 401(k) plan forfeitures.... [P]lan sponsors should inventory any mid-year operational changes and confirm with recordkeepers and legal counsel that the corresponding amendments are formally executed by year-end."  MORE >>

"[S]ponsors of tax-exempt 457(b) plans now face a short timeframe to implement amendments, such as the increase in the required minimum distribution age, which was first raised to 72 under the SECURE Act, then to 73 under SECURE 2.0 ... It is unlikely that the IRS will grant tax-exempt 457(b) plans a last-minute extension, especially given the government shutdown[.]"  MORE >>

"In Administrative Determination No. 25-03, the Hacienda clarifies that SECURE 2.0 amendments will not require sponsors of retirement plans covering residents of Puerto Rico to file for an updated determination letter, although adopting additional, non-SECURE 2.0 amendments may trigger the need for an updated letter."  MORE >>

"Although the mandatory deadline to adopt required amendments to qualified retirement plans remains December 31, 2026 for most plans, plan sponsors will find that amending plans to reflect any required or selected optional provisions when those provisions become effective can help avoid errors in administration, as well as help communicate those changes to plan participants and beneficiaries. Some of the provisions in recent pension legislation will require support from the plan's recordkeeper or third-party administrator, and coordination will likely be necessary before implementing any plan design changes."  MORE >>

"For most plans, no required changes under law or guidance need amendments by Dec. 31, 2025.... [S]ponsors of calendar-year plans may need to update their plan documents before the end of the year to reflect discretionary changes that took effect earlier in 2025.... [M]ost sponsors have until the end of 2026 to amend their plans for several significant law changes enacted in recent years. However, tax-exempt sponsors of 457(b) plans must amend their plans by Dec. 31, 2025, for certain provisions of [both SECURE 1.0 and SECURE 2.0]."  MORE >>

"457(b) plans ... were neglected and excluded from the IRS Notice that extended the amendment deadline for other plans and governmental sponsors of 457(b) plans from the end of 2025 to the end of 2026.... Tax Exempt 457(b) Plans must be amended by the end of this year for the new RMD ages and it doesn't appear there will be any further extensions."  MORE >>

"As plan sponsors grapple with the complexities of new investment options, they also face a very different and rapidly escalating threat -- AI-driven phishing attacks on retirement accounts.... The SECURE 2.0 provisions are nuanced, introducing new requirements for plan sponsors each year since 2023, and 2026 will be no different.... Litigation pressures are also expected to intensify, particularly around forfeitures and plan fees."  MORE >>

"Plan sponsors should review their plan documents to: [1] implement a 'deemed Roth election' that automatically treats high-earner catch-ups as Roth, [1] specify whether wages from multiple employers in a controlled group or from a common paymaster will be aggregated when determining high-earner status, [3] describe any super catch-up opportunity for individuals aged 60 to 63 and [4] describe any in-plan rollover feature that it may consider as a method of correction."  MORE >>

"If you have made any of the following changes in operation to your plan, an amendment is necessary by year end: [1] RMD age ... [2] Roth distributions ... [3] Small benefit amount ... [4] Unforeseeable emergencies."  MORE >>

"The fourth remedial amendment cycle (RAC) list is for defined contribution plans submitted from February 1, 2024, to August 25, 2025, and covers the 2023 Cumulative List.... Once the reviews are complete the list will contain the letter serial numbers and date. The list ... includes: [1] the name of the Pre-approved Plan Provider, [2] the file folder number (FFN) assigned to each plan, [3] the plan type of each document submitted, [4] A letter serial number (LSN) and date. Please note that virtually all opinion letters will be issued at the same time."  MORE >>

"AD No. 25-03 provides that amendments for SECURE 2.0 provisions -- whether optional or mandatory -- do not constitute Qualification Amendments. This clarification is important because under long-standing PR Treasury guidance, a Qualification Amendment must be submitted to the PR Treasury for a new determination letter (even if the plan already has a recent determination letter)."  MORE >>

"[T]he Department has determined that amendments adopted by qualified retirement plan sponsors in Puerto Rico to adopt the provisions of the SECURE Act 2.0, whether optional or mandatory ... will not be considered part of the definition of the term 'Qualification Amendments'. Therefore, if a qualified retirement plan in Puerto Rico is amended to adopt the provisions of the SECURE Act 2.0, the plan does not have to be resubmitted to the Department to request a new Letter of Qualification. Any amendments adopted by qualified retirement plan sponsors under the Code, in parallel with the approval of amendments to adopt the provisions of the SECURE Act 2.0, are outside the scope of this Determination; therefore, they must be analyzed in light of CC PC 16-08 to determine whether they should be submitted to the Department for plan qualification."  MORE >>

"Each employer that sponsors a 403(b) plan which uses a pre-approved plan document must ensure that document is restated to account for changes in law by December 31, 2026. Especially for those nonprofit and public sector organizations characteristically facing resource and staffing constraints, it’s crucial to start the restatement process now."  MORE >>

"Although Notice 2016-16 provides a helpful checklist for changing the definition of compensation in a safe harbor plan mid-year for safe harbor matching contributions, there is no discussion in the notice regarding whether it is possible to change the definition of compensation mid-year for safe harbor nonelective contributions.... [B]ased on the rules for matching contributions, we can extrapolate that any mid-year change to the definition of plan compensation that affects nonelective contributions must increase safe harbor contributions, be effective for the entire plan year, and satisfy notice requirements."  MORE >>

"This list includes pre-approved plans that were submitted to the IRS for opinion letters from May 2, 2022 to May 22, 2025, covering the 2022 Cumulative List. Rev. Proc. 2021-37 changed the pre-approved program so that Prototype and Volume Submitter plans are combined into a single opinion letter program. Additionally, the types of plans are now reflected simply as either standardized or non-standardized pre-approved plans.... Please note that virtually all opinion letters were issued at the same time, November 29, 2024."  MORE >>

"The SECURE 2.0 Act, signed into law in December 2022, introduced several important changes that directly impact Defined Benefit (DB) plans, including how retroactive amendments can be applied. While the law generally aims to enhance retirement savings for employees, it also brings some important shifts in how amendments can be made, especially those that impact prior plan years."  MORE >>

"These lists include Pre-Approved, Master and Prototype (M&P) and Volume Submitter (VS) plans that were submitted to the IRS for opinion or advisory letters ... The third remedial amendment cycle (RAC) list is for defined benefit plans submitted from August 1, 2020, to May 28, 2025 and covers the 2020 Cumulative List.... The third remedial amendment cycle (RAC) list is for defined contribution plans submitted from October 2, 2017, to May 28, 2025, and covers the 2017 Cumulative List. "  MORE >>

"The IRS sent determination letters in 2024 at the same pace as it had the year before in response to requests from DB plans; however, it sent less than half as many to DC plans in 2024 as it did in 2023."  MORE >>

"[A recently added] web page from the IRS summarizes the remedial amendment cycles for preapproved defined contribution (DC), defined benefit (DB) and 403(b) plans. The table contains the full history of the applicable starting and ending dates for each plan type, for every cycle, from the first to the most recent.... IRS hasn't yet issued opinion letters for the fourth cycle for DC plans, so that cycle's end date hasn't been determined."  MORE >>