On December 20, 2023, the Internal Revenue Service (IRS) issued Notice 2024-2 to “provide guidance on discreet issues” concerning the implementation of specific provisions of the SECURE 2.0 Act of 2022 (SECURE 2.0)[1]. Under Notice 2024-2 the IRS exercised its authority to extend the date by which retirement plan amendments must be adopted to reflect the mandatory and discretionary provisions under SECURE 2.0 and other legislation enacted between 2019 and 2022 (aggregately the “Acts”) [2].

The new amendment deadlines are as follows:

Amendments made by the deadlines listed above are entitled to anti-cutback relief from the requirements of Code Section 411(d)(6) or ERISA Section 204(g). These Sections prohibit plan amendments that decrease accrued benefits (e.g., the amount of the benefit payable to a participant is less on the day the amendment is adopted than was payable on the day before adoption). Some of the provisions of SECURE 2.0 may decreased accrued benefits and would be prohibited without the anti-cutback relief. In the meantime, plans are required to be operated as if the amendment were in effect.

[1] Enacted on December 29, 2022 as part of the Consolidated Appropriations Act of 2022.

[2] The extended amendment deadline also applies to amendment required to comply with the Setting Every Community Up with for Retirement Enhancement Act of 2019, Div. O of Pub. L. No. 116-94 (SECURE 1.0), Section 104 of the Bipartisan American Miners Act of 2019, Div. M of Pub. L. No. 116-94) (Miners Act), Section 2202 or 2023 of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136 (CARES Act), and Section 302 of the Taxpayer Certainty and Disaster Tax Relief Act of 2022, Div. EE of Pub. L. 116-220 (Relief Act).

[3] A collectively bargained agreement ratified before December 29, 2022.

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