SECURE 2.0 reflected big changes for retirement plans.
getty
The IRS has extended the deadline to make certain amendments for IRAs, SEP arrangements, and SIMPLE IRA plans to December 31, 2027. The extension was announced in IRS Notice 2026-9, which provides additional time for amending retirement arrangements to comply with the SECURE 2.0 Act of 2022. Under the notice, plan administrators now have until the end of 2027, to formally amend their plans—but there’s still the possibility of a further extension if additional guidance is issued.
Specifically, the extended deadlines apply to the provisions of the SECURE Act, sections 2202 and 2203 of the CARES Act, section 302 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the Relief Act), and the SECURE 2.0 Act.
Earlier guidance in Notice 2024-2 had already pushed these deadlines back. However, in comments submitted to the Treasury Department and the IRS, stakeholders explained that IRA custodians and providers require additional time—particularly because the Treasury Department and the IRS have not yet issued model amendment language for IRAs, SEP arrangements, and SIMPLE IRA plans.
CARES Act Relief: Sections 2202 and 2203
Sections 2202 and 2203 of the CARES Act were enacted in response to the COVID-19 pandemic to give retirement savers greater access to funds and administrative flexibility during 2020. Section 2202 permitted “coronavirus-related distributions” of up to $100,000 from retirement plans and IRAs for affected individuals, waived the 10% early-withdrawal penalty, allowed income from those distributions to be spread over three years, and permitted repayment within that period. It also temporarily increased plan loan limits and allowed delays in loan repayments.
Section 2203 separately waived the required minimum distributions (RMDs) for 2020 for defined contribution plans and IRAs, including those otherwise required for beneficiaries.
Disaster Relief Under Section 302 of the Relief Act
Section 302 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 extended and expanded similar relief for individuals affected by federally declared disasters. That provision authorized penalty-free disaster-related distributions, allowed income from those distributions to be recognized over multiple years, and permitted recontribution of withdrawn amounts to retirement accounts. It also increased loan limits and repayment delays, mirroring provisions in the CARES Act but applying them more broadly to disasters beyond the pandemic.
Why the Deadline Was Extended Again
Although the particular provisions were temporary and, in many cases, optional, plans and IRA providers that implemented them are required to adopt conforming amendments to their governing documents.
Prior IRS guidance had set the amendment deadline at December 31, 2026. However, IRA custodians, insurers, and employers advised the Treasury Department and the IRS that additional time was needed, particularly given ongoing regulatory developments and the absence of any finalized model language. The extra time gives providers a well-deserved breather in the absence of (so far) regulations or clear guidance for amending those plans.
Notice 2026-9 addresses those concerns by extending the deadline for these amendments by one year to December 31, 2027. As a result, trustees, custodians, insurers, and employers sponsoring IRAs, SEP arrangements, and SIMPLE IRA plans may continue to rely on good-faith operational compliance with SECURE 2.0 while they wait for further guidance. The extension will be reflected in Internal Revenue Bulletin 2026-07, dated February 9, 2026. (As a reminder, only guidance published in the Internal Revenue Bulletin has precedential value.)
About SECURE 2.0
The SECURE 2.0 Act of 2022 was signed into law on December 29, 2022, as part of the Consolidated Appropriations Act, 2023. Its provisions generally became effective beginning January 1, 2023, although many changes were phased in over several years, with effective dates ranging from 2024 through 2026. SECURE 2.0 expanded the original SECURE Act of 2019, with a focus on increasing retirement plan participation, boosting savings, and simplifying administration and compliance.
Required Minimum Distributions Under SECURE 2.0
One of the SECURE 2.0 Act’s most significant targets was the required minimum distribution (RMD). RMDs are mandatory withdrawals that must be taken each year from most tax-deferred retirement accounts—such as traditional IRAs and employer-sponsored defined contribution plans—once an individual reaches a specified age. The annual RMD amount is calculated based on the account balance as of the end of the prior year and IRS life expectancy tables. Roth IRAs are exempt from RMDs.
SECURE 2.0 changed the timing and enforcement of RMDs. It increased the RMD starting age from 72 to 73 for individuals who attain age 72 after 2022, and will increase the age again to 75 beginning in 2033. It also reduced the penalty for failing to take an RMD from 50% of the shortfall to 25% (and potentially to 10% if corrected in a timely manner). In addition, as of 2024, Roth accounts in employer plans are no longer subject to lifetime RMDs, aligning their treatment more closely with Roth IRAs.
The Act also replaced RMD rules for beneficiaries, building on the original SECURE Act’s replacement of the “stretch IRA” with a 10-year payout rule for most non-spouse beneficiaries. While certain eligible beneficiaries (such as surviving spouses, disabled individuals, and minor children) may still take distributions over life expectancy, many beneficiaries must fully distribute inherited accounts within ten years, sometimes while also taking annual RMDs during that period.
Other Key SECURE 2.0 Changes
SECURE 2.0 also emphasized broader participation in retirement accounts by requiring automatic enrollment for most newly established 401(k) and 403(b) plans, subject to exceptions for small and new employers. It also expanded catch-up contributions for older workers and, in some cases, required those contributions to be made on a Roth basis.
The Act also introduced new flexibility features, including allowing employer matching contributions on student loan repayments, creating emergency savings options linked to retirement plans, and expanding the availability of Roth treatment across retirement arrangements.
