IRS Provides COVID-19 403(b) Plan Relief

June 15, 2020
Hall Benefits Law, LLC

Due to the COVID-19 pandemic, the IRS has extended the remedial amendments deadline for Section 403(b) plans by three months, from March 31, 2020, to June 30, 2020.

In September 2019, the IRS issued Revenue Procedure 2019-39 that set remedial amendment periods for making amendments to 403(b) plans.  That guidance was updated by the IRS’ recent deadline extension announcement and includes the following:

New remedial amendment period for required changes to 403(b) plans.

New IRS guidance establishes a remedial amendment period for required changes to 403(b) plans that arise after June 30, 2020.  That period ends on the later of either: (1) the final day of the second calendar year after the year in which the change goes into effect, or (2) when the IRS publishes the change on the Required Amendments List.

For governmental 403(b) plans, the IRS has extended the remedial amendment period to the later of either: (1)  the third regular legislative session that follows the calendar year in which the amendment is in effect, or (2) when the IRS publishes the change on the Required Amendments List.

New remedial amendment period for discretionary changes to 403(b) plans.

The IRS has established a remedial amendment period for discretionary changes to 403(b) plans that arise after June 30, 2020.  That period terminates on the final day of the plan year in which the change became effective.

The remedial amendment period for governmental 403(b) plans can now be delayed to the second regular legislative session beginning after the plan year in which the change is in effect.

Limited extension for required changes to 403(b) plans.

In addition to the changes noted above, the IRS has granted a limited extension for required changes to 403(b) plans that arise on or prior to June 30, 2020.  The remedial amendment period for these changes ends on either June 30, 2020 or on the date laid out in the IRS guidance, whichever is later.

The team of ERISA attorneys at Hall Benefits Law helps clients manage legislative and regulatory changes to retirement plans, including handling changes to plan documents and advising on how to implement corresponding procedures. To learn more or to get help making changes to your plans today, call 678-439-6236 today.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.