n-20-83.pdf

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2020 Required Amendments List for Qualified Retirement Plans and § 403(b)
Retirement Plans

Notice 2020-83

I. PURPOSE

This notice sets forth the 2020 Required Amendments List (2020 RA List). The
Required Amendments List (RA List) applies to both individually designed plans
qualified under § 401(a) (qualified individually designed plans) and individually designed
plans that satisfy the requirements of § 403(b) (§ 403(b) individually designed plans).

Section 5 of Rev. Proc. 2016-37, 2016-29 I.R.B. 136, provides that, except as
otherwise provided by statute, or by regulations or other guidance published in the
Internal Revenue Bulletin, in the case of a qualified individually designed plan, the
remedial amendment period for a disqualifying provision arising as a result of a change
in qualification requirements is extended to the end of the second calendar year that
begins after the issuance of the RA List on which the change in qualification
requirements appears. Similarly, section 5 of Rev. Proc. 2019-39, 2019-42 I.R.B. 945,
provides that, except as otherwise provided by statute, or by regulations or other
guidance published in the Internal Revenue Bulletin, with respect to a form defect in a
§ 403(b) individually designed plan, the remedial amendment period arising as a result
of a change in § 403(b) requirements ends on the last day of the second calendar year
that begins after the issuance of the RA List on which the change in § 403(b)
requirements appears. Pursuant to these sections, December 31, 2022, generally is the
last day of the remedial amendment period with respect to (1) a disqualifying provision
arising as a result of a change in qualification requirements that appears on the 2020
RA List, and (2) a form defect arising as a result of a change in § 403(b) requirements
that appears on the 2020 RA List. In addition, under section 8.01 of Rev. Proc. 2016-37
and section 6.01 of Rev. Proc. 2019-39, December 31, 2022, generally is also the plan
amendment deadline for (1) a disqualifying provision arising as a result of a change in
qualification requirements that appears on the 2020 RA List, and (2) a form defect
arising as a result of a change in § 403(b) requirements that appears on the 2020 RA
List. Later dates may apply to a governmental plan (as defined in § 414(d)) pursuant to
sections 5.06(3) and 8.01 of Rev. Proc. 2016-37 and sections 5.03(2)(c) and 6.01 of
Rev. Proc. 2019-39. References to qualification requirements and to § 403(b)
requirements in Parts III and IV of this notice are referred to, separately and collectively,
as “requirements.”
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1
In order to help plan sponsors and practitioners achieve operational compliance with changes in
qualification requirements, the IRS provides the Operational Compliance List, a list of changes in
qualification requirements that are effective during a calendar year, on the IRS website at
https://www.irs.gov/retirement-plans/operational-compliance-list
. See section 10 of Rev. Proc. 2016-37
and section 9 of Rev. Proc. 2019-39.

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II. BACKGROUND
Section 401(b) of the Internal Revenue Code (Code) provides a remedial
amendment period during which a plan may be amended retroactively to comply with
the qualification requirements under § 401(a). Section 1.401(b)-1 describes the
disqualifying provisions that may be amended retroactively and the remedial
amendment period during which retroactive amendments may be adopted. That
regulation also grants the Commissioner the discretion to designate certain plan
provisions as disqualifying provisions and to extend the remedial amendment period.

Sections 5.05 and 5.06 of Rev. Proc. 2016-37 extend the remedial amendment
period for individually designed plans to correct disqualifying provisions that arise as a
result of a change in qualification requirements. Sections 5.05 and 5.06 provide that,
except as otherwise provided by statute, or by regulations or other guidance published
in the Internal Revenue Bulletin, sections 5.05 and 5.06 set forth the extended remedial
amendment period for disqualifying provisions. Under section 5.05(3), the remedial
amendment period for a plan that is not a governmental plan (as defined in § 414(d)) is
extended to the end of the second calendar year that begins after the issuance of the
RA List on which the change in qualification requirements appears. Section 5.06(3)
provides a special rule for governmental plans that may further extend the remedial
amendment period in some cases.

Section 8.01 of Rev. Proc. 2016-37 provides that the plan amendment deadline
with respect to a disqualifying provision described in section 5 of Rev. Proc. 2016-37 is
the date on which the remedial amendment period ends with respect to that
disqualifying provision.

Section 21.02 of Rev. Proc. 2013-22, 2013-18 I.R.B. 985, establishes an initial
remedial amendment period that permits an eligible employer to retroactively correct
form defects in its written § 403(b) plan.

Section 3 of Rev. Proc. 2017-18, 2017-5 I.R.B. 743, as modified by Notice 2020-
35, 2020-25 I.R.B. 948, provides that the initial remedial amendment period for a form
defect in a § 403(b) plan ends on June 30, 2020.

Section 5.01 of Rev. Proc. 2019-39, as modified by Notice 2020-35, establishes
a system of recurring remedial amendment periods for § 403(b) individually designed
plan form defects first occurring after the last day of the initial remedial amendment
period.

Section 5.03(1) of Rev. Proc. 2019-39 provides that, except as otherwise
provided by statute, or by regulations or other guidance published in the Internal
Revenue Bulletin, with respect to a form defect relating to, or integral to, a change in
§ 403(b) requirements that occurs after the initial remedial period, the remedial
amendment period for a § 403(b) individually designed plan that is not a governmental
plan (as defined in § 414(d)) ends on the last day of the second calendar year that

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begins after the issuance of the RA List on which the change in requirements appears.
Section 5.03(2)(c) provides a special rule for governmental plans that could further
extend the remedial amendment period in some cases.

Section 6.01 of Rev. Proc. 2019-39 provides that the plan amendment deadline
with respect to a form defect in a § 403(b) individually designed plan first occurring after
the initial remedial amendment period is the date on which the remedial amendment
period ends with respect to that form defect.

Section 7 of Rev. Proc. 2019-39, as modified by Notice 2020-35, extends the
initial remedial amendment period with respect to a § 403(b) individually designed plan
form defect first occurring on or before June 30, 2020, to the later of (1) June 30, 2020,
or (2) the end of the remedial amendment period provided under section 5 of Rev.
Proc. 2019-39.

Section 9 of Rev. Proc. 2016-37 and section 8.01 of Rev. Proc. 2019-39, as
modified by Notice 2020-35, provide that the Department of the Treasury (Treasury
Department) and the Internal Revenue Service (IRS) intend to publish an RA List
annually. In general, a change in qualification requirements will not appear on an RA
List until guidance with respect to that change (including, in certain cases, model
amendments) has been provided in regulations or in other guidance published in the
Internal Revenue Bulletin. However, in the discretion of the Treasury Department and
the IRS, a change in qualification requirements may be included on an RA List in other
circumstances, such as in cases in which a statutory change is enacted and the
Treasury Department and the IRS anticipate that no guidance will be issued.

The remedial amendment period applicable to a disqualifying provision arising as
a result of a change in qualification requirements may be extended beyond the date that
normally would apply to an item included on the 2020 RA List. Section 601 of the
Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act)
2

provides, in general, that a retirement plan or annuity contract will be treated as being
operated in accordance with the terms of the plan and, except as provided by the
Secretary of the Treasury (Secretary), or the Secretary’s delegate, a retirement plan will
not fail to satisfy the anti-cutback requirements of § 411(d)(6) of the Code or § 204(g) of
the Employee Retirement Income Security Act of 1974, Pub. L. 93-406, 88 Stat. 829
(1974), as amended (ERISA), as a result of a plan amendment made pursuant to a
provision of the SECURE Act or the regulations thereunder, provided that:

(1) the amendment is adopted no later than the last day of the first plan year
beginning on or after January 1, 2022, or, for an applicable collectively
bargained plan (a plan maintained pursuant to one or more collective
bargaining agreements between employee representatives and one or more
employers ratified before December 20, 2019) or a § 414(d) governmental
plan, the last day of the first plan year beginning on or after January 1, 2024,

2
The SECURE Act appears in Division O of the Further Consolidated Appropriations Act, 2020, Pub. L.
116-94, 133 Stat. 2534, which was enacted on December 20, 2019.

4

or such later date as the Secretary may prescribe (SECURE Act section 601
date);

(2) the amendment applies retroactively to the effective date of the SECURE
Act provision or the regulations thereunder (or, in the case of an amendment
not required by a provision of the SECURE Act or the regulations thereunder,
the effective date specified by the plan or contract); and

(3) the plan or contract is operated as if the amendment were in effect during the
period beginning on the effective date of the SECURE Act provision or the
regulations thereunder (or, in the case of an amendment not required by a
provision of the SECURE Act or the regulations thereunder, the effective date
specified by the plan or contract) and ending on the SECURE Act section 601
date or, if earlier, the date the amendment is adopted.

Notice 2020-68, 2020-38 I.R.B. 567, Q&A G-1, provides the deadline by which a
retirement plan must be amended to reflect the provisions of the SECURE Act and the
regulations thereunder. In general, for (1) a qualified plan that is not a governmental
plan within the meaning of § 414(d) of the Code or an applicable collectively bargained
plan, or (2) a § 403(b) plan that is not maintained by a public school (as described in
§ 403(b)(1)(A)(ii)), the deadline to amend for provisions of the SECURE Act and the
regulations thereunder is the last day of the first plan year beginning on or after January
1, 2022. The plan amendment deadline for a qualified § 414(d) governmental plan or
an applicable collectively bargained plan, and a § 403(b) plan that is maintained by a
public school, as described in § 403(b)(1)(A)(ii), is the last day of the first plan year
beginning on or after January 1, 2024.

III. CONTENT AND ORGANIZATION OF RA LIST

In general, an RA List includes statutory and administrative changes in
requirements that are first effective during the plan year in which the list is published.
3

However, an RA List does not include guidance issued or legislation enacted after the
list has been prepared and also does not include:

• Statutory changes in requirements for which the Treasury Department and
the IRS expect to issue guidance (which would be included on an RA List
issued in a future year);
• Changes in requirements that permit (but do not require) optional plan
provisions, in contrast to changes in requirements that cause existing plan

3
RA Lists also may include changes in requirements that were first effective in a prior year that were not
included on a prior RA List under certain circumstances, such as changes in requirements that were
issued or enacted after the prior year’s RA List was prepared.

5

provisions (which may include optional plan provisions previously adopted) to
become disqualifying provisions or § 403(b) form defects;
4
or

• Changes in the tax laws affecting qualified individually designed plans or
§ 403(b) individually designed plans that do not change the requirements
under § 401(a) or § 403(b) (such as changes to the tax treatment of plan
distributions, or changes to the funding requirements for qualified individually
designed plans).
The RA List is divided into two parts. Part A covers changes in requirements that
generally would require an amendment to most plans or to most plans of the type
affected by the change.

Part B includes changes in requirements that the Treasury Department and the
IRS anticipate will not require amendments to most plans, but might require an
amendment because of an unusual plan provision in a particular plan. For example, if a
change affects a particular requirement that most plans incorporate by reference, Part B
would include the change because a particular plan might not incorporate the
requirement by reference and, thus, might include language inconsistent with the
change.

Annual, monthly, or other periodic changes to (1) the various dollar limits that are
adjusted for cost of living increases as provided in § 415(d) or other Code provisions,
(2) the spot segment rates used to determine the applicable interest rate under
§ 417(e)(3), and (3) the applicable mortality table under § 417(e)(3), are treated as
included on the RA List for the year in which such changes are effective even though
they are not directly referenced on that RA List. The Treasury Department and the IRS
anticipate that few plans have language that will need to be amended on account of
these changes.

The fact that a change in a requirement is included on the RA List does not mean
that a plan must be amended as a result of that change. Each plan sponsor must
determine whether a particular change in a requirement requires an amendment to its
plan.

IV. 2020 REQUIRED AMENDMENTS LIST

Part A. Changes in requirements that generally would require an amendment to most
plans or to most plans of the type affected by the change.

• None

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The remedial amendment period and plan amendment deadline for discretionary changes to the terms
of a qualified individually designed plan are governed by sections 5.05(2), 5.06(2), and 8.02 of Rev. Proc.
2016-37. The remedial amendment period and plan amendment deadline for discretionary changes to
the terms of a § 403(b) individually designed plan are governed by sections 5.03(1)(b), 5.03(2)(b), and
6.02 of Rev. Proc. 2019-39. These deadlines for discretionary changes are not affected by the inclusion
of a change in requirements on an RA List.

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Part B. Other changes in requirements that may require an amendment.

• Difficulty of care payments treated as compensation for retirement
contribution limitations (SECURE Act section 116). SECURE Act
section 116(b) adds § 415(c)(8) to the Code to increase the annual
additions limit for retirement plans to take into account difficulty of care
payments, which are defined in § 131(c). Section 415(c)(8)(A)
provides that a participant’s compensation for purposes of § 415(c)(1)
is increased by the amount of difficulty of care payments. Plans that
are maintained by employers that have provided difficulty of care
payments during plan years beginning after December 31, 2015, and
before January 1, 2021, must be amended by December 31, 2022 or, if
later, the SECURE Act section 601 date applicable to the plan, as set
forth in section G of Notice 2020-68. If an employer changes its
practice and begins to make difficulty of care payments to its
employees in future years, the plan must be amended to include
difficulty of care payments in the definition of § 415(c)(1) compensation
by the end of the second calendar year following the calendar year in
which the employer begins to make difficulty of care payments.
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Note: See also section E of Notice 2020-68, which provides questions
and answers related to SECURE Act section 116.

• Application of cooperative and small employer charity pension plan
rules to certain charitable employers (CARES Act section 3609).
CARES Act section 3609 adds § 414(y)(1)(D) to the Code. Section
414(y)(1)(D) provides that a cooperative and small employer charity
pension plan (CSEC plan) is defined to include a defined benefit plan
that, as of January 1, 2000, was maintained by a tax-exempt employer
that met specific characteristics. A CSEC plan as defined in § 414(y)
is not permitted to include the benefit restrictions of § 436.

V. DRAFTING INFORMATION

The principal author of this notice is Angelique Carrington of the Office of
Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment
Taxes). For further information regarding this notice, contact Ms. Carrington at
(202) 317-4148 (not a toll-free number).

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Notice 2020-68, Q&A E-2, provides, in part, that if an employer does not make difficulty of care
payments to its employees that are eligible to participate in the employer’s plan, then the plan does not
need to be amended to include difficulty of care payments in the plan’s definition of § 415(c)(1)
compensation.