.Table of Provisions | Division T - Consolidated Appropriations Act
Updated
by
Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA
The following table provides a summary of the provisions in the Act relating to plans subject to IRC §401. Where applicable, links to an in-depth articles. Scroll to the right to view the full table.
Act Section | Description of Issue | IRC § or ERISA § | Plans Impacted | Effective Date | "M"andatory / "O"ptional) | Link to Article |
§102, §111 | Small employer plan start-up credit | IRC §45E | All qualified plans | January 2023 | M | https://help.erisa.com/article/ch67b9we2o-start-up-credit-for-small-employers |
§105 | Pooled Employer Plans Modifications | ERISA §(43)(B)(ii) | Qualified DC plans | January 2023 | M | |
§107 | Modifications to RMD rules | IRC §§401(a)(9)(C)(i), 408(b) | Qualified plans and IRAs | January 2023 | M | https://help.erisa.com/article/iqz2vmhlge-modifications-to-rmd-rules |
§311 | Repayment of qualifed birth or adoption distribution, limited to 3 years | IRC §72(t)(2) | DC plans | January 2023 | M | https://help.erisa.com/article/wjb5sodcab-repayment-of-qualified-birth-or-adoption-distribution |
§312 | Employee certification that deemed hardship distribution conditions are met | IRC §§ 401(k)(14), 403(b)(7) & (11), 457(d) | §401(k) plans | January 2023 | O | https://help.erisa.com/article/am4shubety-hardship-distributions-participant-certification |
§317 | Retroactive first year elective deferrals for sole proprietors | IRC §401(b)(2) | §401(k) plans | January 2023 | O | |
§320 | Eliminating unnecessary plan requirements for unenrolled participants | Adds new ERISA §111 and IRC §414(bb) | Individual acount plans | January 2023 | O | |
§326 | Exception to penalty for early distributions for terminally ill participants | IRC §72(t)(2) | Distributions otherwise subject to IRC §72(t) early distribution tax | January 2023 | O | |
§604 | Optional treatment of employer matching or nonelective contributions as Roth contributions | IRC §402A | DC plans | January 2023 | O? | https://help.erisa.com/article/ijcwjxzhbr-designating-employer-contributions-as-roth-contributions |
§110 | Student loan payments treated as for purposes of matching contributions | IRC §§ 401(m), 408(p), 403(b), 457(b) | §401(k) plans | January 2024 | O | |
§113 | Small incentives for contributing to a plan | IRC §§ 401(k), 403(b)(12), 4975; ERISA §408(b) | §401(k) plans | January 2024 | O | |
§115 | Emergency withdrawals up to $1,000 | IRC §72(t) | DC plans | January 2024 | O | |
§121 | Starter 401(k) plans for employers with no retirement plan | IRC §§ 401(k), 403(b), 416(g)(4) | §401(k) plans | January 2024 | O | |
§304 | Modifications to the dollar limit for mandatory distributions from $5,000 to $7,000 | ERISA §203; IRC §§ 401(a)(31)(B), 411(a)(11)(A) | Qualified plans | January 2024 | O | |
§310 | Application of top-heavy rules for defined contribution plans covering excludable employees | IRC §416 | DC plan subject to top-heavy rules | January 2024 | M | |
§314 | Penalty-free withdrawal for individuals in case of domestic abuse | IRC §6501(l) | DC plans not subject to J&S rules | January 2024 | O | |
§315 | Reform of family attribution rule | IRC §414 | All plan subjecto to attribution | January 2024 | M | |
§316 | Amendments to increase benefit accruals under plan for previous plan year allowed until employer tax return due date | IRC §401(b) | Qualified plans | January 2024 | M | |
§325 | Roth accounts not subject to RMDs | IRC §402A | §401(k) plans with designated Roth contributions | January 2024 | M | |
§332 | Replace SIMPLE with safe harbor plan during the year | IRC §§ 408(p), 408(d)(3), 72(t) | SIMPLE IRA | January 2024 | M | |
§101 | Expansion of automatic enrollment | IRC §414A | §401(k) Plans | January 2025 | ||
§125 | Improving coverage for part-time employees | ERISA §§ 202, 203(b), IRC §§ 401(k)(2)(D), 416(g)(4)(H) | §401(k) plans | January 2025 | M | https://help.erisa.com/article/ndcep9lz7o-long-term-part-time-employees |
§109 | Catch-up limits for ages 60 to 63 | IRC §414(v)(2)(B) | §401(k) plans | January 2025 | ||
§318 | Performance benchmarkes for asset allocation funds | ERISA §404 | DC plans that are particiapnt directed | TBD | ||
§331 | Special rules for use of retirement funds in connection with qualified federally declared disasters | IRC §§ 72(p), 72(t), 402 | DC plans | Based on incidents that begin on or after the date that is 30 days after enactment of Taxpayer Certainty and Disaster Relief Act of 2020 | ||
§338 | Requirement to provide paper statements | ERISA §105(a)(2) | Plans subject to ERISA statement disclosures | January 2026 | ||
§603 | Catch-ups must be Roth for those earning more than $145K in prior year | IRC §§ 414(v), 402(g)(1), 457(e)(18) | §401(k) plans | January 2026 | M |
