IRS Revises Deadline for Discretionary Plan Amendments
September 15, 2020
On September 2, 2020, the IRS released Revenue Procedure (Rev. Proc.) 2020-40, which revises the timeframe for when qualified pre-approved plans and 403(b) pre-approved plans must adopt discretionary plan amendments. Under Rev. Proc. 2016-37 for qualified pre-approved plans and Rev. Proc. 2019-39, the plan amendment deadline is the end of the plan year in which the plan amendment was operationally effective unless the IRS requires an earlier deadline under statutory provision or guidance.
Under Rev. Proc. 2020-40, the previous procedures are revised so that the timeline for discretionary amendments under pre-approved plans and 403(b) pre-approved plans is the end of the plan year following the effective date of the amendment unless the IRS provides a deadline that is either earlier or later.
The modification of the procedures is effective immediately.
Rev. Proc. 2020-40 »