Marissa served as the HR director of a longtime client. “David, I received an amendment package for our retirement plan from our TPA firm. It references SECURE 1.0, the CARES Act, SECURE 2.0, and enough numbered sections to make me question my career choice.”
I laughed. “That sounds about right.”
“I was told to have our CFO sign the amendment ASAP, but I don’t know what I should say to her when she asks me what I am asking her to sign. I don’t want to look foolish Do we need this?” Marissa continued. “We’ve changed our procedures whenever new rules took effect. We updated our required minimum distributions, started tracking long-term part-time employees, and adjusted the payroll system for new catch-up limits. Haven’t we already complied?”
“Operationally, perhaps,” I replied. “But your plan document has to catch up with that.”
“Those aren’t the same thing?”
“Think of your plan document as the instruction manual. Congress changed the rules several times, and the IRS gave employers some time to operate under those new rules before formally rewriting the manual. That extension is ending. For most private-sector qualified retirement plans and most nongovernmental 403(b) plans, the amendments must be adopted by December 31, 2026.”
“So we’ve been following rules that aren’t in our document yet?”
“Yes, and that was permitted, provided the plan operated according to the new requirements. The IRS refers to this as “operational compliance.” At some point, however, the plan document must be amended so the written terms match what actually happened.”
Marissa picked up the amendment package. “What kinds of changes are we talking about?”
“SECURE 1.0 pushed back the age when minimum distributions must begin, expanded eligibility for long-term part-time employees, and gave employers much more flexibility when establishing new plans. The CARES Act created temporary coronavirus-related distributions, expanded loan limits, and permitted delayed loan repayments.”
“I remember. We did offer delayed loan repayments during COVID.”
“Your amendment needs to reflect that. A plan that offered CARES Act relief has to document the provisions it implemented. You don’t want the permanent record to suggest those those administrative changes were permitted through spontaneous administrative enthusiasm.”
She laughed. “And SECURE 2.0?”
“That legislation contains more than 90 retirement-related provisions. Some are required; others aren’t. They include automatic enrollment for certain newer plans, expanded long-term part-time eligibility, Roth treatment for certain employer contributions, and increased catch-up contribution limits for participants ages 60 through 63.”
“Do we have to add every optional provision?”
“No. That’s why someone needs to review which provisions apply, which optional features the company implemented, and which ones make sense for the plan going forward.”
Marissa looked relieved. “Our TPA sent the package so I assume they’ve already reviewed all of that.”
“I wouldn’t assume anything.”
“Why not?”
“Many TPAs prepare standard amendment packages without knowing the specific operational decisions your company made. Did you offer CARES Act distributions? Did you permit delayed loan repayments? Which optional SECURE 2.0 features did you implement? Does the amendment reflect how payroll and HR have actually administered the plan?”
“So the TPA sends the forms, but we’re still responsible for getting them right?”
“Yes, and for signing them on time. The employer is always responsible for maintaining a compliant plan document and following its terms. A provider or a TPA can prepare an amendment, but that document can’t leap out of your inbox, explain itself to management, secure the signature, and file itself in the permanent records. Retirement plans require formal written documents, and, from time to time, amendments that your company is expected to maintain.
Marissa sighed. “Well at least December 31 sounds comfortably distant.”
“Sure it does—until the amendment requires review by HR, finance, legal counsel, the TPA, the recordkeeper, and an executive who left for the holidays on December 15. Missed deadlines are one of the most common retirement-plan compliance pitfalls. This needs our attention now.”
“What should I do?”
“Actually, nothing. I can have my team review the documents, identify the applicable provisions, prepare the amendment, and provide you with a memo you can share with your CFO.
“That sounds delightfully easy, David!”
The December 31, 2026 deadline is not an administrative formality. Your plan may have operated under years of legislative changes, but sooner or later those changes must formally become part of your plan document. Ask the experts at Concierge how to keep your document and your plan in alignment.