IRS Extends Amendment Deadline

IRS Extends Deadline to Amend IRAs for SECURE Act Changes

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act), which was signed into law in December 2019, made numerous changes to the IRA rules, most notably to the lifetime RMD rules for IRA owners and death distribution rules for beneficiaries. In September 2020, the IRS issued Notice 2020-68 which provided guidance for implementing the changes made by the SECURE Act. In the Notice, the IRS indicated that they expect to issue revised model IRA agreements (e.g., IRS Form 5305-A, Traditional Individual Retirement Custodial Account, and Form 5305-RA, Roth Individual Retirement Custodial Account), which are the IRA agreements (contracts) most financial institutions use to establish IRAs, and that the deadline to amend those documents was December 31, 2022.

However, on August 3, 2022, the IRS issued Notice 2022-33 to extend the deadline to amend IRAs to December 31, 2025. The IRS has not stated when they will publish revised model IRA agreements.