The IRS announced on March 27th via its website the extension of the initial remedial amendment period for Section 403(b) plans from March 31, 2020, to June 30, 2020.   It also extended the deadline for the second six-year remedial amendment cycle for pre-approved defined benefit plans from April 30, 2020, to July 31, 2020.

403(b) Plans

 Revenue Procedure 2019-39 includes a system of recurring remedial amendment periods for both Individually Designed and Pre-approved 403(b) plans.  The initial remedial amendment period began on the later of January 1, 2010, or the effective date of the plan and was to end as of March 31, 2020.  Cycle 2 for the 403(b) pre-approved plans was to begin April 1, 2020.  This announcement extends the initial remedial amendment period end date to June 30, 2020, and the beginning date for Cycle 2 to July 1, 2020.  The IRS states it will issue more guidance related to the extension.

Defined Benefit Plans

Announcement 2018-05 originally determined April 30, 2020, as the end of the second six-year remedial amendment cycle for defined benefit plan.  The website announcement also extends this deadline from April 30, 2020, to July 31, 2020.  The IRS states it will consider an employer who adopts a pre-approved defined benefit plan approved based on the 2012 Cumulative List by July 31, 2020, to have timely adopted a plan under the second six-year remedial amendment cycle as described in Revenue Procedure 2016-37.

This extension of the Defined Benefit Cycle 2 remedial amendment period delays the beginning date for the third six-year cycle remedial amendment cycle to August 1, 2020, but the end date remains the same, January 1, 2025.  It does not change the beginning of the submission period for advisory opinion letter applications for the Cycle 3 remedial amendment period, which remains August 1, 2020, ending July 31, 2021.

Should you have questions about plan document restatements or the IRS’s announcement, please contact us for assistance.  We will, of course, keep you updated as the IRS issues additional guidance.

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Photo of Kathryn W. Wheeler, CEBS Kathryn W. Wheeler, CEBS

Kathryn W. Wheeler is the Knowledge Management (“KM”) Attorney for Jackson Lewis P.C.’s Employee Benefits Practice Group, and is based in the Overland Park, Kansas, office of Jackson Lewis P.C. She has more than 25 years in the employee benefits industry, 14 of…

Kathryn W. Wheeler is the Knowledge Management (“KM”) Attorney for Jackson Lewis P.C.’s Employee Benefits Practice Group, and is based in the Overland Park, Kansas, office of Jackson Lewis P.C. She has more than 25 years in the employee benefits industry, 14 of those years as a benefits manager for private industry. She received her Certified Employee Benefit Specialist (CEBS) designation from the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania.

Ms. Wheeler has experience with employee benefits from the perspective of clients and of legal counsel, giving her the ability to understand the issues confronting clients from both sides of the table. Her zeal for protecting the company’s interests in employee benefit-related areas led her to receive her law license to better negotiate the statutes and regulations imposed on employers. She has experience in a broad range of benefit matters, including general compliance and administration of qualified retirement plans under ERISA and the Internal Revenue Code. She also has extensive experience with welfare plan design for self-insured health plans and welfare plan issues involving cafeteria plans, health plans, flexible spending accounts, group insurance products, COBRA, and HIPAA.

Ms. Wheeler has a particular focus on assisting employers with the various compliance requirements associated with qualified retirement plans and qualified welfare plans, including preparing the Form 5500 annual report for clients. She also prepares submissions for Voluntary Correction Program, Delinquent Filer Corrective Program, and Voluntary Fiduciary Correction Program. She has experience negotiating with outside benefits providers, including prototype plan sponsors, third party administrators, insurers, actuaries, and auditors.