15 Apr IRS Issues Additional Coronavirus Relief
On Thursday, April 9, 2020, the Internal Revenue Service (“IRS”) and Pension Benefit Guaranty Corporation (“PBGC”) issued guidance expanding relief for numerous tax related activities authorized under President Trump’s March 13, 2020 declaration of a state of emergency in response to the COVID-19 crisis.
Under its Notice 2020-23, the IRS extends to July15, 2020 the “time sensitive” acts listed in Rev. Proc. 2018-58 due to be performed on or after April 1, 2020 and before July 15, 2020. Following are a few of the significant extensions relating to qualified defined contribution plans:
- The 60-day period by which individuals may rollover any required minimum distribution (“RMD”) made on or after February 1, 2020 to May 15, 2020. This will provide additional time for participants who received an RMD prior to the CARES Act waiver provision. The extension would not cover any rollover period ending prior to April 1, 2020.
- The Form 5500 filing deadline for plans with years ending September 30, October 31, or November 30. Relief may also be available for non-calendar plans whose fiscal year ends as early as June 30 or July 30, provided they have filed for the automatic extension available under Form 5558.
- To all participants the CARES Act provision permitting plan loan repayments extensions to participants affected by the coronavirus; however only through July 15, 2020.
- Distribution of excess deferrals under IRC 402(g)
- Distributions for excess contributions/excess aggregate contributions by highly compensated employees under IRC 401(k)(8);
- Distribution of nondeductible contributions to avoid the 10 percent penalty under Code section 4972.
- Distribution of excess matching contributions under 401(m)(6)
- The Employee Plans Compliance Resolution System (EPCRS) deadline for self-correcting certain significant failures.
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