The IRS recently clarified the deadline for adopting plan amendments implementing SECURE and SECURE 2.0 Acts. Although the bulletin generally gives plan sponsors additional time to adopt required amendments under the acts, the deadline remains December 31, 2026, for most private-sector retirement plans to adopt written amendments reflecting discretionary changes under the SECURE Act and SECURE 2.0, as well as any CARES Act provisions the plan adopted. Advisors who help plan sponsor clients stay ahead of this deadline will protect their clients from unnecessary compliance risk and demonstrate the kind of proactive guidance that strengthens long-term relationships.

IRS Clarification on the Amendment Deadline

On September 16, 2026, the IRS issued guidance clarifying how amendment deadlines work under the SECURE and SECURE 2.0 Acts. The guidance separates required amendments from discretionary amendments.

For required amendments, the deadline follows the annual Required Amendments List. Once a provision appears on the list, plan sponsors generally have until the end of the second calendar year after publication to adopt the amendment. If the IRS expects to issue guidance needed to draft a provision, the IRS indicates that the provision will not appear on the list until that guidance is issued and becomes applicable.

For discretionary amendments under these acts (new features a plan chooses to adopt, but which are not legally required), the deadline generally remains December 31, 2026 for most private-sector plans. Later deadlines apply to applicable collectively bargained plans (December 31, 2028) and governmental plans (generally December 31, 2029).  Discretionary features themselves will not appear on a Required Amendments List, but later guidance governing adopted features may.

Although the guidance effectively extends the deadline to adopt required amendments under SECURE and SECURE 2.0, most of these provisions are already required to be operationally effective. Accordingly, formalizing those provisions in plan amendments is the most practical next step, if not already complete.

With those distinctions in mind, some of the key amendment categories are summarized below:

Discretionary provisions the sponsor chose to adopt. If the sponsor elected optional features, such as enhanced catch-up limits for ages 60-63, student loan matching, pension-linked emergency savings accounts, an increased involuntary cash-out threshold, Roth treatment of employer contributions, or other optional features, the adopted provisions generally must be documented by December 31, 2026.

CARES Act provisions. If the plan adopted coronavirus-related distributions, expanded loan limits, loan repayment suspensions, or the waiver of 2020 required minimum distributions, those time-limited provisions generally must be documented in the plan’s written amendment by December 31, 2026, even though these provisions have expired.

Changes to required minimum distribution rules. The age at which participants generally must begin taking distributions from their retirement accounts has changed twice in recent years. It moved from 70½ to 72, and then from 72 to 73 (and eventually to 75).  Other changes include beneficiary distribution rules and the elimination of lifetime RMDs from designated Roth accounts.  For changes covered by the 2025 Required Amendments List, the amendment deadline generally is December 31, 2027.  Remaining RMD changes await a future list.

Mandatory Roth treatment of catch-up contributions for higher-earning participants. Beginning in 2026, participants in 401(k), 403(b), and governmental 457(b) plans whose prior-year FICA wages from the plan sponsor exceeded $150,000 (the 2026 threshold, indexed for future years) generally must make age-based catch-up contributions on a Roth (after-tax) basis. Plans that allow catch-up contributions must either offer a Roth option or eliminate catch-up contributions for affected participants, subject to applicable nondiscrimination rules. Per the IRS, this change is expected to appear on the 2027 Required Amendments List. As such, the amendment deadline for most 401(k) and 403(b) plans is expected to be December 31, 2029.

Eligibility for long-term, part-time employees. This provision is operationally effective for plan years beginning after December 31, 2024. The 401(k) eligibility threshold for elective deferrals by long-term, part-time employees was reduced from three consecutive years of 500 or more hours of service to two consecutive years. The two-year rule also applies to ERISA-covered 403(b) plans and must be reflected in the plan document. The formal amendment deadline for this change will be set by a future Required Amendments List after final regulations are issued and become applicable.

Mandatory automatic enrollment for new plans. New 401(k) and 403(b) plans established on or after December 29, 2022 are generally required, for plan years beginning after 2024, to include an automatic enrollment feature with an initial default deferral rate of at least 3% (but not more than 10%), escalating by 1% annually to at least 10%, with a 15% maximum. Exceptions include SIMPLE 401(k), governmental and church plans, and certain small or new employers.  If a plan was required to include this feature, the plan document must reflect it. The formal amendment deadline for this change will be set by a future Required Amendments List after final regulations are issued and become applicable.

Accordingly, December 31, 2026 is primarily a deadline for discretionary and CARES Act amendments. Required amendments on the 2024 Required Amendments List also generally remain due then.  Regardless of when the formal deadlines land for required amendments, these provisions are already governing plan operations. The most prudent approach is to treat year-end 2026 as the working deadline for all amendments, required and discretionary alike, where amendment language is available. The IRS indicated that the upcoming 2026 Required Amendments List will include additional clarification consistent with their recent bulletin.

What Advisors Can Do Now

Advisors are well-positioned to help plan sponsor clients navigate these deadlines. The single most important step is to encourage clients to engage with their third-party administrator, document provider, and legal counsel now, not in December. By raising this issue proactively and helping clients coordinate with their service providers, advisors can prevent last-minute scrambles.

Upcoming deadlines:

October 15. For calendar-year plans, deadline to adopt and implement a corrective amendment to correct a Code Section 410(b) coverage failure or a Code Section 401(a)(4) nondiscrimination failure for the 2025 plan year.

October 15. Extended deadline for filing 2025 Form 5500 for calendar-year plans that received an extension.

December 2. General deadline to distribute applicable safe harbor, QDIA, QACA, and automatic enrollment annual notices to participants for the 2027 calendar plan year.

Most advisors will encounter controlled group issues at some point. While the rules can become complex, understanding the basics can help identify potential problems early and ensure retirement plans remain compliant.

Why Controlled Group Rules Matter

The controlled group rules exist to prevent business owners from dividing employees among multiple entities to avoid retirement plan requirements. If related businesses are considered a controlled group, they are generally treated as a single employer for many qualified plan purposes, including coverage testing, nondiscrimination testing, minimum participation requirements, and contribution and benefit limitations.

Without these rules, an employer could potentially provide generous retirement benefits to one group of employees, such as the highly compensated employees, while excluding all non-highly compensated employees who work for another company.

Because controlled group status can significantly affect plan administration, advisors should be alert whenever a client owns interests in multiple businesses.

The Two Primary Controlled Group Tests

Parent-Subsidiary Controlled Groups

A parent-subsidiary controlled group generally exists when one company owns at least 80% of another company.

Common examples include:

Parent-subsidiary example 1: Company A owns 80% of Company B.

Parent-subsidiary example 2: Company A owns 80% of Company B. Company A also owns 80% of Company C.

Parent-subsidiary example 3: Company A owns 80% of Company B. Company B owns 80% of Company C.

In all of the above, each company is part of a single controlled group with the other companies in each example.

Brother-Sister Controlled Groups

A brother-sister controlled group exists when the same five or fewer individuals, estates, or trusts own multiple businesses and satisfy two ownership tests:

1. Together, they own at least 80% of each business; and
2. They have more than 50% identical ownership across the businesses.

The second requirement, identical ownership, is often the more challenging concept. In simple terms, an owner’s identical ownership is the lowest percentage they own in each company being tested, then added together. For example:

Because Adam and Ben collectively satisfy both the 80% and 50% tests, Companies A and B would generally be considered a controlled group.

Don’t Forget Family Attribution

One of the most common surprises in controlled group analyses involves family attribution rules.

In many situations, the IRS treats an individual as owning interests held by certain family members. As a result, ownership may be attributed between spouses, parents and children, as well as grandparents and grandchildren.

This means a controlled group may exist even when ownership appears sufficiently separated on paper. While there are exceptions, family ownership should always prompt additional review.

Practical Tips for Advisors

Controlled group issues often surface during new plan installations, annual compliance testing, or plan design discussions. Consider asking clients:

• Do you own part of another business?
• Do family members own related businesses?
• Have ownership percentages changed recently?
• Are employees working for more than one entity?

These simple questions can help uncover issues before they become compliance problems.

If you have any questions or are looking for more information on control groups, feel free to reach out to your trusted TBC TPA.

Upcoming deadlines:

• July 31. Form 5500-series returns are generally due the last day of the seventh month after the plan year ends.  A calendar-year plan’s 2025 Form 5500 is due July 31, 2026, unless extended by Form 5558.
• July 31. Form 8955-SSA (if required) is also generally due the last day of the seventh month after plan year-end.  A calendar-year plan’s 2025 Form 8955-SSA is due July 31, 2026, unless extended by Form 5558.
• July 31. File Form 5558 extension request by July 31 to extend Form 5500-series and/or Form 8955-SSA to October 15, 2026.

It is important for you to be aware that a recent federal court decision in Kwong v. United States (“Kwong”) has opened the door for certain taxpayers to pursue refunds of IRS-assessed interest and penalties, particularly in situations involving late payment or estimated tax underpayments during the period between 1/20/2020 and 7/11/2023. While the ruling is nuanced and fact-specific, it raises meaningful opportunities for taxpayers who previously paid amounts that may not have been properly assessed due to the Federal Government declaring Covid-19 a federal disaster.

According to the National Taxpayer Advocate, “[u]nder the reasoning of the Kwong decision, you may be entitled to a refund or abatement of certain amounts assessed during the COVID period, including:

• Penalties assessed for failure to timely file returns, failure to pay taxes, or failure to make estimated tax payments;
• Interest that began accruing earlier than it should have, or not at all; and
• Overpayment interest for the 2020–2023 disaster period.”

The IRS usually does not issue refunds or abate tax/penalty assessments while the law is uncertain.  Currently the Kwong case is being litigated through the appeals process.  However, based on the court decision, all refund claims will need to be filed by 7/10/2026. If you plan on filing, all paperwork will be due to TBC by June 30th in order to meet the deadline.

Given the uncertainty and the potential for further litigation or IRS guidance, taxpayers should consider filing a protective refund claim.  A protective refund claim keeps your ability to claim a refund intact while the court case is still pending.

Contact your TBC advisor to assist with:

• Evaluating eligibility under the Kwong decision;
• Quantifying potential refund claims;
• Preparing and filing Form 843 protective claims;
• Monitoring developments and managing IRS correspondence.

Considering this development, taxpayers should consider conducting a targeted review of prior filings and payments made during the affected period to determine whether you may be eligible to file refund claims. Given the technical complexity and fact-dependent nature of the Kwong decision, a careful analysis of each taxpayer’s specific circumstances is important. Proactive evaluation now may help preserve potential refund opportunities before the 7/10/2026 refund claim due date.

If you are in need of assistance or are looking for more information on potential refund opportunities for IRS interest and penalties, please feel free to reach out to your trusted TBC advisor.

For the right employer, a “combo plan” can create a powerful opportunity to increase deductible contributions and accelerate retirement savings.

What is a Combo Plan?  A combo plan generally combines a defined contribution plan and a defined benefit plan for the same employer or controlled group.  A common combo design pairs a safe harbor 401(k) plan with a cash balance plan.  The 401(k) plan allows salary deferrals and employer contributions, while the cash balance plan can support much larger actuarially determined contributions, often favoring older owners.

Example.  A 55-year-old business owner with $360,000 of annual compensation sponsors a 401(k) plan and a cash balance plan.  She receives employer contributions to the 401(k) plan of $21,600 and makes $24,500 of elective deferrals and $8,000 of catch-up contributions.  Her total contributions to the 401(k) plan are $54,100.  The cash balance plan might separately support a much larger actuarially determined contribution, for example, $180,000.

Compliance Framework:  Combo plans require coordination under several Code provisions, including Section 404 (deduction limits, including coordination between DB and DC plans), Section 415 (defined benefit and defined contribution limits), Section 401(a)(4) (nondiscrimination) and Section 410(b) (coverage).  In many cases, the plans are tested on a combined basis, rather than plan-by-plan, to demonstrate the overall arrangement does not discriminate in favor of highly compensated employees.  The defined benefit component also introduces minimum funding and actuarial considerations that do not exist in a stand-alone 401(k) plan.

On-Going Administration Matters: These arrangements require annual attention to census and ownership data, controlled-group status, compensation definitions, eligibility, minimum participation under Section 401(a)(26), top-heavy considerations (including minimum contribution requirements), deduction timing, and required cash funding for the DB component.  A combo plan that looks great in a proposal can become problematic quickly if assumptions change.

Where TPAs Can Help:

Combo plans can be some of the most valuable arrangements a client can implement, but they also bring risk.  Poor designs can produce failed testing, unexpected minimum required contributions, missed funding targets, or structures that were never realistic given staff demographics.  TPAs are often the professionals best positioned to help clients establish well-designed plans and ensure proper testing and administration.

If you have any questions or are looking for more information about Combo Plans, feel free to reach out to your trusted TBC TPA.

Upcoming deadlines.

May 15: Quarterly benefit statements for participant-directed individual account plans are generally furnished by this date for the quarter ended March 31, 2026.