On January 26, the IRS issued Notice 2026-9 (Notice) which further extended the deadline for Individual Retirement Accounts (IRAs) and Simplified Employee Pensions (SEPs) to be amended to comply with changes in the law under recent legislation known as SECURE 2.0, SECURE Act, CARES Act, and The Taxpayer Certainty and Disaster Tax Relief Act of 2020. The deadline was December 31, 2026, but the Notice has extended it to December 31, 2027. The IRS stated the reason for the change was the fact that stakeholders provided feedback that without model amendments, they would need more time to implement the changes. The IRS is still developing model amendments. Therefore, it extended the deadline.

Second Extension. SECURE 2.0 was enacted in late 2022 and extended the deadline for these amendments to the end of 2025. However, in late 2023, the IRS issued Notice 2024-02 which extended the deadline to the end of 2026 for most plans. See, Notice 2024-02 Extends Deadline For SECURE 2.0 Amendments And Provides Other Guidance. The 457(b) plans of tax exempt organizations were excluded from this extension though, meaning the end of 2025 deadline still applied to these plans. See, Tax Exempt Organizations Sponsoring 457(b) Plans Must Amend Plans by Year-End.

Only IRAs and SEPs. This new extension does not apply to qualified plans, 403(b) plans, or 457(b) plans of state and local governments. The deadline for their amendments remain December 31, 2026, with certain exceptions for collectively bargained and governmental plans.

Conclusion. This additional extension shows the IRS can be flexible on certain matters. However, issuing the Notice was a golden opportunity to also extend the deadline for 457(b) plans sponsored by tax exempt organizations whose deadline of December 31, 2025, has already passed. The failure of the Notice to address this signifies that there will be no further extension for such plans. However, depending on the plan’s terms and operation missing the deadline may not cause adverse tax consequences. Any tax exempt organization that missed the deadline should consult legal counsel immediately.