December 31, 2026, Retirement Plan Amendment Deadline: What Plan Sponsors Need to Know

Takeaways

• Many private-sector retirement plan sponsors must adopt required SECURE Act, CARES Act, and SECURE 2.0 plan amendments by December 31, 2026.
• Operating a retirement plan in compliance with the new rules is not enough; applicable changes also must be reflected in the plan’s governing documents.
• Required amendments vary by plan type and may affect 401(k), 403(b), defined benefit, and other qualified retirement plans.

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Plan sponsors should begin preparing now for an important compliance deadline affecting qualified retirement plans. Required plan amendments reflecting changes under the SECURE Act, the CARES Act, the SECURE 2.0 Act, and related federal guidance generally must be adopted by December 31, 2026.

Legislative Overview

Since 2019, Congress has enacted significant changes to the rules governing qualified retirement plans, including:

• • SECURE Act of 2019 — Raised the required minimum distribution age, limited the “stretch IRA” for many beneficiaries, expanded eligibility for long-term part-time employees, and introduced new tax credits for certain plan sponsors.
  • CARES Act of 2020 — Temporarily permitted coronavirus-related distributions and expanded plan loan options.
  • SECURE 2.0 Act of 2022 — Introduced Roth catch-up contribution requirements for certain higher earners, expanded automatic enrollment provisions, increased catch-up contribution limits for participants ages 60–63, permitted pension-linked emergency savings accounts, and further modified required minimum distribution rules.

Many plans have already implemented some of these changes operationally. However, operational compliance alone is not enough. The Internal Revenue Service requires plan documents to be formally updated by the applicable remedial amendment deadline.

December 31, 2026, Deadline

The remedial amendment period for these legislative changes closes on December 31, 2026. This is the deadline for adopting compliant plan language for applicable changes without risking plan disqualification or other adverse tax consequences.

Certain exceptions and variations apply. For collectively bargained plans, the amendment deadline is generally December 31, 2028. For governmental plans, the amendment deadline is generally December 31, 2029.

Timely adoption of required amendments helps preserve a plan’s tax-qualified status retroactively and reduces the risk of penalties, correction filings, and administrative burdens.

Which Plans May Be Affected?

The specific amendments required will depend on the type of plan and the provisions already adopted or implemented. For example:

• • 401(k) plans may require amendments addressing automatic enrollment, Roth catch-up contributions for certain higher earners, increased catch-up limits for participants ages 60–63, required minimum distribution changes, long-term part-time employee eligibility, and other implemented optional or mandatory provisions.
  • 403(b) plans may require amendments addressing distribution rules, long-term part-time employee eligibility, catch-up contributions, and other applicable plan design changes.
  • Defined benefit and other qualified retirement plans may require amendments addressing required minimum distribution ages, in-service distribution options, and other applicable legislative changes.

Plan sponsors should also coordinate with their recordkeepers, third-party administrators, payroll providers, auditors, and legal counsel to confirm which amendments apply based on the plan’s current design and any operational changes that have been implemented.

Next Steps

To meet the December 31, 2026, deadline and avoid last-minute compliance issues, plan sponsors should take the following actions:

1. 1. By October 1, 2026: Schedule a review with legal counsel and applicable plan service providers to determine which amendments apply to the plan.
   2. By November 15, 2026: Review and approve draft amendment language. For individually designed plans, amendment language may need to be prepared by counsel. For pre-approved plan documents, sponsors should review draft amendments prepared by the recordkeeper or third-party administrator.
   3. By December 11, 2026: Execute final plan amendments and distribute copies to the plan’s recordkeeper, auditor, payroll administrator, and other relevant service providers to ensure timely implementation and recordkeeping.

Consequences of Missing the Deadline

If required amendments are not adopted by December 31, 2026, the plan may need to correct the failure through the IRS’s Employee Plans Compliance Resolution System (EPCRS). Correction may involve filing fees, additional administrative work, and potentially retroactive operational corrections.

Early review and timely adoption can help avoid unnecessary costs and reduce the risk of compliance issues.

Conclusion

Plan sponsors should begin reviewing their retirement plan documents now to determine which amendments are required before the December 31, 2026, deadline.

If you have any questions about the information in this alert, please contact your relationship attorney or any member of Dykema’s Employee Benefits and Executive Compensation Practice Group.