The IRS has issued its 2019 Required Amendments List (2019 RA List) for individually designed employee retirement plans. Beginning with the 2019 list, all RA Lists will apply to both Code Sec. 401(a) and Code Sec. 403(b) individually designed plans.
The RA Lists have two parts. Part A covers changes in requirements that would require an amendment to most plans or to most plans of the type affected by the change. The two items in Part A are: (1) the final regulations relating to hardship distributions ( T.D. 9875; Sept. 23, 2019); and (2) the final regulations regarding collectively bargained cash balance/hybrid defined benefit plans ( T.D. 9693, Sept. 19, 2014; T.D. 9743, Nov. 16, 2015). Part B includes changes in requirements that do not require amendments to most plans, but might require an amendment because of an unusual plan provision in a particular plan. There is nothing listed under Part B for 2019 RA List.
For hardship distributions, plans that: (1) provide for a suspension of an employee’s elective deferrals or employee contributions as a condition for obtaining a hardship distribution of elective deferrals, or (2) do not require a representation from an employee who requests a hardship distribution that he or she has insufficient cash or other liquid assets reasonably available to satisfy the need, must be amended as necessary to eliminate the suspension and provide for the representation, for hardship distributions made on or after January 1, 2020.
Collectively bargained cash balance/hybrid defined benefit plans maintained under to one or more collective bargaining agreements ratified on or before November 13, 2015, must be amended to the extent necessary to comply with those portions of the regulations regarding market rate of return and other requirements that first became applicable to the plan, for the plan year beginning on or after the later of: (1) January 1, 2017, and (2) the earlier of (a) January 1, 2019, and (b) the date on which the last of those collective bargaining agreements terminates (determined without regard to any extension thereof on or after November 13, 2015).
In general, December 31, 2021, is the last day of the remedial amendment period and the plan amendment deadline with respect to: (1) a disqualifying provision arising as a result of a change in qualification requirements that appears on the 2019 RA List; and (2) a form defect arising as a result of a change in Code Sec. 403(b) requirements that appears on the 2019 RA List. Later dates may apply to a governmental plan.