Clarification on Extending Deadlines for Amendments to CARES Act Provisions | Proskauer – Benefits and Executive Compensation Blog

On September 26, 2022, the IRS issued IRS Notice 2022-45, which corrected a potential oversight in IRS Notice 2022-33, discussed in detail here. Notice 2022-33 had extended the deadline for adopting certain amendments to retirement and savings plans required by the Setting Every Community Up for Retirement Enhancement Act 2019 Act”).SECURE Law”) and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) from December 31, 2022 to December 31, 2025, but the extension did not apply to certain provisions of the CARES Act, including: coronavirus-related penalty-free distributions, increase in authorized loan amount and deferral of repayment loan amounts.

Notice 2022-45 corrects this inconsistency by extending the deadline for adopting amendments covered by Section 2202 of the CARES Act—that’s to saypenalty-free coronavirus-related distributions, increase in authorized loan amount and deferral of repayment of loan amounts – from December 31, 2022 to December 31, 2025. In addition, Notice 2022-45 similarly extends the time limit for enacting qualified catastrophe distribution provisions pursuant to the Taxpayer Certainty and Disaster Tax Relief Act (“relief law”). The notice explains that the purpose of this clarification was to ensure that all changes required by the SECURE, CARES and Relief Acts can be passed in one amendment.

This clarification is welcome for many plan administrators and sponsors, as it eliminates the confusion that some changes are deferred, but others are due this year.

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