Notice 2024-2 — Internal Revenue Bulletin 2024-52

J-1, provides the deadlines by which a

retirement plan must be amended to reflect the provisions of the SECURE Act, sec tion 104 of the Miners Act, section 2202 or 2203 of the CARES Act, section 302 of the Relief Act, and the SECURE 2.0 Act (the Acts) and the regulations thereunder. ⁷ In general, the deadline for a qualified plan: (1) that is not a governmental plan within the meaning of section 414(d) of the Code or an applicable collectively bar gained plan is December 31, 2026; (2) that is an applicable collectively bargained plan is December 31, 2028; or (3) that is a governmental plan within the meaning of section 414(d) is December 31, 2029. In general, the deadline to amend a sec tion 403(b) plan: (1) that is not maintained by a public school, as described in section 403(b)(1)(A)(ii), is December 31, 2026; (2) that is an applicable collectively bar gained plan of a tax-exempt organization described in section 501(c)(3) is Decem ber 31, 2028; or (3) that is maintained by a public school, as described in section 403(b)(1)(A)(ii), is December 31, 2029.

III. REMEDIAL AMENDMENT PERIOD AND PLAN AMENDMENT DEADLINE

For individually designed plans, December 31, 2026, is generally both 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 qualifica tion requirements that appears on the 2024 RA List, and (2) a form defect arising as a result of a change in section 403(b) requirements that appears on the 2024 RA List. For pre-approved plans, December 31, 2026, is also generally the last day for a provider (or the adopting employer, if applicable) to timely adopt an interim amendment. Later dates may apply to a

governmental plan within the meaning of section 414(d) pursuant to section 5.03(2) (c) of Rev. Proc. 2022-40 for individually designed plans and section 7.01(2) of Rev. Proc. 2023-37 for pre-approved plans.

IV. CONTENT AND ORGANIZATION OF RA LIST

In general, an RA List includes changes to statutory and administrative qualifi cation requirements and section 403(b) requirements ⁸ with which the plan must comply in operation during the calendar year in which the list is published. ⁹ How ever, an RA List does not include:

Guidance issued or legislation enacted after the list has been prepared;
Changes in requirements that can not reasonably be reflected in plan language without guidance and with respect to which the Treasury Depart ment and the IRS expect to issue guidance that would be included on an RA List issued in a future year;
Changes in requirements that per mit (but do not require) optional plan provisions, in contrast to changes in requirements that cause existing plan provisions (which may include optional plan provisions previously adopted) to become disqualifying provisions or section 403(b) form defects; ¹⁰ or
Changes in the tax laws affecting qualified plans or section 403(b) plans that do not cause plan provi sions to become disqualifying provi sions or section 403(b) form defects (such as changes to the tax treatment of plan distributions or changes to the plan funding requirements). The RA List is divided into three parts. Part A includes changes in requirements that (1) generally would require an amend ment to most plans or to most plans of the

3 Division O of the Further Consolidated Appropriations Act, 2020, Pub. L. 116-94, 133 Stat. 2534 (2019).

4 Pub. L. 116-136, 134 Stat. 281 (2020).

5 Division EE of the Consolidated Appropriations Act, 2021, Pub. L. 116-260, 134 Stat. 1182 (2020).

6 Section G of Notice 2020-68, 2020-38 IRB 567, extended the deadline to amend a plan to reflect section 104 of Division M of the Further Consolidated Appropriations Act, known as the Bipartisan American Miners Act of 2019 (Miners Act), to coordinate with the plan amendment deadlines provided in section 601 of the SECURE Act.

7 See section II.H of Notice 2024-2 relating to section 348 of the SECURE 2.0 Act for guidance that (1) addresses which cash balance plan amendments are made pursuant to section 348 of the SECURE 2.0 Act for purposes of applying section 501, and (2) sets forth the application of the exception under section 411(d)(6) for those plan amendments changing the interest crediting rate under the plan.

8 References to qualification requirements and to section 403(b) requirements in Parts IV and V of this notice are referred to as “requirements.”

9 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 require ments that were issued or enacted after the prior year’s RA List was prepared.

10 The remedial amendment period and plan amendment deadline for discretionary changes to the terms of an individually designed qualified or section 403(b) plan are governed by sections 5.03(1)(b), 5.03(2)(b), and 6.02 of Rev. Proc. 2022-40. The remedial amendment period and plan amendment deadline for discretionary changes are not affected by the inclusion of a change in requirements on an RA List.

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type affected by the changes, and (2) do not relate to optional plan provisions pre viously adopted.

Part B includes changes in require ments that (1) 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, and (2) do not relate to optional plan pro visions previously adopted. For example, if a change affects a particular requirement that most plans incorporate by reference, Part B would include that change because a particular plan might not incorporate the requirement by reference and, thus, might include language inconsistent with the change.

Part C includes changes in requirements that relate to optional plan provisions pre viously adopted. For example, changes in requirements included in section L of Notice 2024-2 relating to the treatment of employer contributions or nonelective contributions as Roth contributions under section 604 of the SECURE 2.0 Act are included in Part C. This placement is because plans are not required to include terms providing for that Roth treatment (so that section 604 of the SECURE 2.0 Act will not be listed on any RA List) but plans that were amended to provide for the treatment of employer contributions as Roth contributions prior to the release of section L of Notice 2024-2 are required to comply with administrative guidance relating to that treatment.

Amendments to an eligible retirement plan (including an annuity contract) made pursuant to a provision of the Acts, or any regulations or other guidance published in the IRB under the Acts, that are made on or before the plan amendment deadline established under the RA List in which the provision is included will not cause the plan to fail to satisfy the anti-cutback requirements of section 411(d)(6) of the Code or section 204(g) of ERISA, if appli cable, by reason of the amendments.

Annual, monthly, or other periodic changes to (1) the various dollar limits that are adjusted for cost of living increases as provided in section 415(d) or other Code provisions, (2) the spot segment rates used to determine the applicable interest rate under section 417(e)(3), and (3) the appli cable mortality table under section 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 neces sarily mean that a plan must be amended as a result of that change. Each plan spon sor must determine whether a particu lar change in a requirement requires an amendment to its plan.

V. 2024 REQUIRED AMENDMENTS LIST

Part A. Changes in requirements that gen-

erally would require an amend- ment to most plans or to most plans of the type affected by the change and do not relate to optional plan provisions previously adopted.

None

Part B. Changes in requirements that may

require an amendment because of an unusual plan provision in a particular plan and do not relate to optional plan provisions previ- ously adopted.

Application of section 415 limit for certain employees of rural electric cooperatives (SECURE 2.0 Act section 119). Under sec tion 415(b)(12) of the Code, rural electric cooperative retire ment plans no longer have a compensation-based limit for participants who are non-highly compensated employees.
- Reform of family attribution rule (SECURE 2.0 Act section 315). Section 414 of the Code is amended to eliminate auto matic attribution of ownership between spouses with sepa rate businesses in community property states, and to modify the attribution rules regarding ownership between parents and minor children, for purposes of applying the rules relating to a controlled group of corpora tions under section 414(b) or an affiliated service group under section 414(m).

Part C. Changes in requirements that

relate to optional plan provisions previously adopted.

Guidance for Coronavirus-Re- lated Distributions from Retire- ment Plans Under the CARES Act (Notice 2020-50, 2020-28 IRB 35). Under section 2202 of the CARES Act, plans may provide for in-service coronavi rus-related distributions. Notice 2020-50 provides guidance with respect to this optional provi sion.
Guidance on Waiver of 2020 Required Minimum Distribu- tions (Notice 2020-51, 2020-29 IRB 73), Transition Relief and Guidance Relating to Certain Required Minimum Distribu- tions (Notice 2023-54, 2023-31 IRB 382), and Certain Required Minimum Distributions for 2024 (Notice 2024-35, 2024-19 IRB 1051). Guidance is pro vided with respect to optional required minimum distribution provisions.
Miscellaneous Changes Under the SECURE Act and the Min- ers Act (Notice 2020-68, 202038 IRB 567):
SECURE Act section 113.

Under section 104 of the Miners Act, the minimum age is reduced for allowable in-service distributions. Sec tion F of Notice 2020-68 pro vides guidance with respect to this optional provision.

Guidance on Sections 102 and 103 of the SECURE Act with Respect to Safe Harbor Plans (Notice 2020-86, 2020-53 IRB 1786). Under sections 102 and 103 of the SECURE Act, the 10-percent cap for automatic enrollment safe harbor plans is increased and certain other

Under section 113 of the SECURE Act, certain plans may permit qualified birth or adoption distributions. Sec tion D of Notice 2020-68 pro vides guidance with respect to this optional provision.

Miners Act section 104.

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changes with respect to safe harbor plans are made. Guid ance is provided with respect to optional safe harbor plan provi sions.

Repayment of qualified birth

contributions to be desig nated as Roth contributions. Section L of Notice 2024-2 provides guidance with respect to this optional provi sion.

Guidance on Anti-Abuse Rules Under Section 127 of the SECURE 2.0 Act of 2022 and Certain Other Issues with Respect to Pension-Linked Emergency Savings Accounts (Notice 2024-22, 2024-6 IRB 662). Under section 127 of the SECURE 2.0 Act, plans may implement pension-linked emergency savings accounts. Notice 2024-22 provides guid ance regarding anti-abuse rules with respect to this optional pro vision.
- Certain Exceptions to the 10 Percent Additional Tax Under Code Section 72(t) (Notice 2024-55, 2024-28 IRB 31). Under section 115 of the SECURE 2.0 Act, certain plans may permit emergency personal expense distributions. Under section 314 of the SECURE 2.0 Act, certain plans may permit domestic abuse victim distribu tions. Notice 2024-55 provides guidance with respect to these optional provisions.

VI. DRAFTING INFORMATION

The principal author of this notice is Tom Morgan of the Office of Associ ate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For further information regard ing this notice, contact Mr. Morgan at (202) 317-6700 (not a toll-free number).

or adoption distribution lim- ited to 3 years (SECURE 2.0 Act section 311). Under sec tion 113 of the SECURE Act, plans may permit qualified birth or adoption distributions and those distributions may be repaid to an applicable eli gible retirement plan. Under section 311 of the SECURE 2.0 Act, repayment of quali fied birth or adoption distri butions is limited to a 3-year period beginning on the day after the date on which the distribution was received.

Amendments relating to Setting Every Community Up for Retire- ment Enhancement Act of 2019 (SECURE 2.0 Act section 401). Section 103 of the SECURE Act provides rules relating to elec tion of safe harbor 401(k) status. Section 401 of the SECURE 2.0 Act provides a technical amend ment with respect to optional safe harbor plan provisions.
Miscellaneous Changes Under the SECURE 2.0 Act of 2022 (Notice 2024-2, 2024-2 IRB 316):
Section 113 of the SECURE

2.0 Act. Under section 113 of the SECURE 2.0 Act, employers may offer small immediate financial incen tives for contributing to a plan. Section D of Notice 2024-2 provides guidance with respect to this optional provision. ¹¹

Section 117 of the SECURE

2.0 Act. Under section 117 of the SECURE 2.0 Act, the contribution limit for SIM PLE 401(k) plans is increased for certain eligible employ ers. Section E of Notice 2024-2 provides guidance with respect to this optional provision.

Section 332 of the SECURE

2.0 Act. Under section 332 of the SECURE 2.0 Act, employers are allowed to replace SIMPLE retirement accounts with safe harbor 401(k) plans during a year. Section G of Notice 2024-2 provides guidance with respect to this optional provi sion.

Section 348 of the SECURE

2.0 Act. Under section 348 of the SECURE 2.0 Act, a cash balance plan that provides for pay credits to participants that increase with a partici pant’s age or service and pro vides for a variable interest crediting rate no longer risks violating the accrual require ments of section 411(b)(1) of the Code if that interest cred iting rate falls below a certain point. Section H of Notice 2024-2 provides guidance with respect to the applica tion of section 501 of the SECURE 2.0 Act for amend ments made pursuant to this optional provision.

Section 604 of the SECURE

2.0 Act. Under section 604 of the SECURE 2.0 Act, a plan may permit certain matching contributions or nonelective

11 A plan sponsor that does not offer small immediate financial incentives outside of the plan, based on contributions to the plan, would not need to adopt plan language with respect to small immediate financial incentives. In addition, even if the plan sponsor were to offer small immediate financial incentives outside of the plan, it is anticipated that the plan generally would not include language with respect to those small immediate financial incentives (so that amendments to comply with section D of Notice 2024-2 would not be required).

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as a result of these natural disasters, it is important that the Agencies take steps to minimize the possibility of such individ uals losing benefits because of a failure to comply with certain pre-established time frames. Similarly, the Agencies recognize that affected group health plans may have difficulty in complying with the timing of certain notice obligations.

The Agencies believe the relief estab lished by this notice is immediately needed to preserve and protect the bene fits of participants, beneficiaries, qualified beneficiaries, and claimants in affected plans. Accordingly, the Agencies have determined, pursuant to section 553 of the Administrative Procedure Act, 5 U.S.C. 553(b)(A), (B) and 553(d), that there is good cause for granting the relief pro vided by this notice effective immediately upon publication, and that notice and pub lic participation may result in undue delay and, therefore, be contrary to the public interest.

This document has been reviewed by the Department of Health and Human Ser vices (HHS), which has advised the Agen cies that HHS concurs with the relief spec ified in this document in the application of the laws under its jurisdiction. ³

HHS has advised the Agencies that HHS encourages plan sponsors of non-Federal governmental plans and health insurance issuers offering group or individual health insurance coverage to extend otherwise applicable timeframes under titles XXII and XXVII of the Public Health Service Act (PHS Act) ⁴ for participants, beneficia ries, and enrollees in a manner consistent with the relief provided in this notice.

Extension of Certain Timeframes for Employee Benefit Plans, Participants, Beneficiaries, Qualified Beneficiaries, and Claimants Affected by Hurricane Helene, Tropical Storm Helene, or Hurricane Milton.