IRS Extends Deadlines for Amending Qualified Retirement Plans

As an early holiday gift, the IRS has extended the deadlines for plan sponsors to amend their qualified retirement plans to comply with certain changes in the law and regulations. Generally, the deadline for adopting these amendments is the later of (i) the due date (including extensions) for filing the income tax return for the employer’s taxable year in which the amendment is effective, or (ii) the last day of the plan year in which the amendment is effective. In Notice 2005-95 (the “Notice”), the IRS provides considerable relief from this general rule. The Notice allows additional time for plan sponsors to adopt amendments relating to a number of required changes, including the retroactive annuity starting date requirements, the new automatic rollover rules, and the final regulations issued under Code Sections 401(k) and (m). In addition, the Notice clarifies the application of other rules provided under previous IRS guidance.