The IRS has extended the deadlines for plan sponsors to adopt certain retirement plans as a result of the Coronavirus emergency.
403(b) Plans
In 2013, The IRS initiated a 403(b) program that allows eligible employers to amend or restate their plans retroactively. Plan sponsors could correct defects in their written plan document going back as far as 2010. The program applies to both pre-approved and individually designed 403(b) plans. This recent announcement extends the deadline to adopt a pre-approved plan or timely amend an individually designed plan from March 31, 2020 to June 30, 2020.
Pre-Approved Defined Benefit Plans
The IRS also extended the deadline for plan sponsors to adopt pre-approved defined benefit plans. The deadline to adopt a pre-approved defined benefit plan was extended from April 30, 2020 to July 31, 2020.
The extended deadline gives plan sponsors extra time to complete the administrative tasks required for a restatement, and gives plan sponsors that have not initiated the restatement process one last chance to fit within the restatement windows. If you have questions regarding these extended deadlines or any other changes to benefit plans caused by COVID-19, please contact any of our Graydon employee benefits attorneys.
