IRS Issues 2020 Cumulative List of Changes in Plan Qualification Requirements

The IRS has issued the 2020 cumulative list of changes in plan qualification requirements for pre-approved defined benefit plans. The changes are contained in Notice 2020-14.

The 2020 Cumulative List sets forth specific matters the IRS has identified for review in determining whether a DB plan document that has been filed for an opinion letter has been properly updated. Notice 2020-14 notes that the 2020 Cumulative List changes plan qualification requirements under Internal Revenue Code Sections 401, 402, 411(a)(13), 411(b), 415, 417 and 436 in accordance with laws enacted, regulations promulgated and even court rulings from the period Oct.1, 2012 - Dec. 1, 2019.

 

The 2020 Cumulative List is to be used by pre-approved plan providers to submit opinion letter applications for pre-approved DB plans during the third six-year remedial amendment cycle, which begins May 1, 2020, and ends Jan. 31, 2025. DB plans may be submitted for approval during the on-cycle submission period, which begins August 1, 2020, and ends July 31, 2021.

 

 

The SECURE Act was enacted on Dec. 20, 2019—and Notice 2020-14 notes that the new list incorporates provisions of laws enacted and regulations issued through Dec. 1. Therefore, the IRS says:

 

However, the IRS also says, pre-approved plan providers will need to timely adopt interim or discretionary amendments under DB plan documents submitted under the third remedial amendment cycle. Generally, the deadline for adopting any plan amendment made under the SECURE Act is the last day of the first plan year beginning on or after Jan. 1, 2022—a deadline that applies regarding these interim or discretionary amendments, rather than the general deadlines for timely adoption of interim or discretionary amendments that Section 15 of Revenue Procedure 2016-37 sets forth.

Notice 2020-14 will be published in Internal Revenue Bulletin 2020-13 on March 23, 2020.