close
Share with your friends

Rev. Proc. 2020-40: Extension of plan amendment deadlines, pre-approved plans

Extension of plan amendment deadlines

The IRS today released an advance version of Rev. Proc. 2020-40 that modifies prior guidance to expand situations when the plan amendment deadline for discretionary amendments made to qualified pre-approved plans and section 403(b) pre-approved plans may be extended.

1000

Related content

Rev. Proc. 2020-40 [PDF 39 KB] amends guidance previously provided by Rev. Proc. 2016-37 and Rev. Proc. 2019-39.

Today’s revenue procedure states that these modifications are consistent with the extensions of the plan amendment deadlines for discretionary amendments set forth in Rev. Proc. 2016-37 with respect to qualified individually designed plans and Rev. Proc. 2019-39 with respect to section 403(b) individually designed plans.

Background

The provisions of the prior revenue procedures as revised by Rev. Proc. 2020-40 are as follows—

Provisions of Rev. Proc. 2016-37 that set forth:

  • Procedures for obtaining determination letters for qualified individually designed plans and opinion letters for qualified pre-approved plans submitted to the IRS, including providing plan amendment deadlines for interim and discretionary amendments made to these plans
  • The deadline for the timely adoption of a discretionary amendment to a qualified pre-approved plan (in general, a discretionary amendment is considered to have been adopted timely if the plan amendment is adopted by the end of the plan year in which the plan amendment is operationally put into effect and provides that the deadline applies unless a statutory provision or guidance issued by the IRS sets forth an earlier deadline to timely adopt a discretionary amendment with respect to a plan year)

Provisions of Rev. Proc. 2019-39 that set forth:

  • Procedures for obtaining opinion and advisory letters for section 403(b) pre-approved plans submitted to the IRS, and provide plan amendment deadlines for interim and discretionary amendments made to section 403(b) pre-approved plans and for discretionary amendments made to section 403(b) individually designed plans
  • The deadline for the timely adoption of a discretionary amendment to a section 403(b) pre-approved plan (a discretionary amendment generally is considered to have been adopted timely if the plan amendment is adopted by the end of the plan year in which the plan amendment is operationally put into effect, and this rule applies unless a statutory provision or guidance issued by the IRS sets forth an earlier deadline to timely adopt a discretionary amendment with respect to a plan year)

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal