Ready, Set, Amend! After Years of Delay, the IRS Requires Most Employers to Update Retirement Plan Documents by December 31, 2026

By: Lesley Russo, Esq.
March 2026

Most employers that sponsor a qualified retirement plan, such as a 401(k) plan, face a key compliance deadline this year. December 31, 2026 is the date that plan documents must be amended to reflect requirements enacted by SECURE 2.0, the SECURE Act, the CARES Act, and other federal legislation.

These laws were enacted in 2019, 2020, and 2022, and many of their provisions required plans to operate in compliance with these federal law changes long before formal amendments are due. Congress and the IRS intentionally provided additional time for employers to amend their plan documents to catch up with operational changes.

The IRS has extended the amendment deadline several times. Most recently, it extended the deadline until December 31, 2027, but only for employers that sponsor IRA-based retirement plans, such as Simplified Employee Pension (SEP) arrangements and SIMPLE IRA plans (see IRS Notice 2026-9).

For most other non-governmental retirement plans, the deadline remains December 31, 2026 (see IRS Notices 2024-2 and 2024-82). Collectively bargained plans have a later amendment deadline of December 31, 2028, and governmental plans generally have until December 31, 2029, so those plans are not specifically addressed in this alert.

In short, for most employers, 2026 is the year your retirement plan paperwork must catch up with how the plan has already been operating. Failure to timely adopt required amendments can create qualification defects that may require correction under IRS compliance programs and, in rare cases, could jeopardize the plan’s tax-qualified status.

What HR Should Be Doing Now

Although the formal deadline is December 31, 2026, taking a few proactive steps now can help avoid a fourth-quarter compliance scramble.

1. Confirm Your Plan Provider’s Amendment Timeline

Most employers use pre-approved plan documents provided by a third-party administrator (TPA) or other institutional provider. These documents generally include an adoption agreement that’s a check-the-box template used to select desired plan features, together with an underlying plan document containing detailed provisions required by federal law.

Some employers instead sponsor what the IRS refers to as an “individually designed plan.” These plans typically use amendments drafted by attorneys or benefits consultants rather than a standardized adoption agreement. Regardless of document type, most non-governmental employer plans share the same December 31, 2026, amendment deadline. This deadline applies regardless of the plan year specified in the retirement plan or the employer’s fiscal year.

Many TPAs or other document providers are expected to distribute SECURE, CARES, and SECURE 2.0 amendment packages throughout 2026, so employers should watch for communications from their plan providers and allow sufficient time for internal review and approval.

Recommended Action Steps:

  • Ask your plan provider for the expected timeline for providing an amendment package or updated plan document.
  • Add key dates to your internal compliance calendar to avoid year-end bottlenecks.
  • Build in time for review of updated documentation and approval by the appropriate company bodies such as plan committees or the board of directors.

2. Inventory Optional Plan Features

Not all of the federal law changes referenced above are mandatory. Optional provisions were permitted to be adopted prior to the amendment deadline. Some of the discretionary provisions that employers may have adopted, depending upon the type of retirement plan offered, include:

  • Roth employer contributions
  • Increased mandatory cash-out limits
  • Student loan matching contributions
  • Emergency personal expense withdrawals
  • Pension-linked emergency savings accounts
  • Expanded hardship withdrawal rules and hardship self-certification

Recommended Action Steps:

  • Before signing updated documents, confirm which optional features were adopted and implemented and the applicable effective dates. The amendment update must reflect actual plan operations.
  • Determine whether any optional provisions not previously adopted would be beneficial to add as part of the plan amendment update.

3. Review the Amendment Package Carefully

Your plan document provider will send an amendment package for review and adoption, but ultimate responsibility rests with the employer. It’s therefore important to ensure that the plan document accurately reflects plan operations and applicable legal requirements.

The amendment process is therefore a good opportunity to confirm that operational practices and written plan terms remain aligned. If discrepancies are identified, employers may need to consider correction options under the IRS Employee Plans Compliance Resolution System (EPCRS).

Recommended Action Steps:

  • Carefully review the terms of the updated plan document package that you receive from your TPA or plan document provider for consistency with plan operations and federal law requirements.
  • Consider obtaining legal review as part of your due diligence process, particularly if compliance questions arise.

4. Review Corporate and Plan Sponsor Changes

If your organization has undergone mergers, acquisitions, asset sales, or restructuring, it is important to confirm that the correct sponsoring employer is approving and adopting the amendment and that any participating employers, such as subsidiaries or related entities, are properly identified in the plan documentation or execute any required participation agreements.

Plan amendment deadlines often expose corporate housekeeping gaps.

Recommended Action Steps:

  • Confirm that the correct adopting and participating employer(s) are listed in the amendment package.
  • Confirm that the proper employer representatives sign the amendment or participation agreements based on appropriate corporate approvals.

5. Review Participant Communications and Plan Disclosures

Employers should also confirm that participant communications, such as summary plan descriptions (SPDs) or summaries of material modifications (SMMs), are updated as needed to reflect any plan changes implemented under SECURE, CARES, or SECURE 2.0 to comply with ERISA disclosure requirements.

How We Can Help

If you would like assistance reviewing your plan amendment package, evaluating plan design changes, or assessing potential compliance issues, please contact a member of our Benefits Team: