In response to the COVID-19 crisis and the impact it has had on conducting everyday business, the IRS has announced that it is extending the remedial amendment period for both Section 403(b) plans and for defined benefit plans.
The deadline for adopting a Section 403(b) plan for the initial remedial amendment period, has been extended from the original deadline of March 31, 2020 to June 30, 2020. This means that plan sponsor have until the June 30, 2020 deadline to sign the plan document and correct defects in their plan documents that may go back to the initial adoption of the plan or January 1, 2010, whichever is later.
The IRS also extended the deadline for adopting a pre-approved defined benefit (including cash balance) plan from April 30, 2020 to July 31, 2020. Therefore, plan sponsors have until July 31, 2020 to adopt a pre-approved document, or submit a determination letter application if the plan is individually designed.
If you have any questions, please contact your Nyhart consultant for more information.