IRS Extends Amendment Deadline for SEP and SIMPLE IRA-Based Plans
If your organization sponsors a retirement plan for employees, you’ve probably noticed that compliance hasn’t been easy over the last few years. Whether the SECURE Act, the CARES Act and other pandemic-era legislation, or SECURE 2.0, employers have had to deal with significant changes.
The IRS apparently sympathizes. In its recently issued Notice 2026-9, the tax agency has extended the general deadline for amending certain IRA-based plans.
Key point
The key point of Notice 2026-9 is that the deadline for making required written amendments to certain retirement plans has been extended to December 31, 2027. (According to the notice, the deadline could be extended further if necessary.) For employers, the two arrangements chiefly in question are:
- Simplified Employee Pension (SEP) plans, under which sponsors provide participants with SEP-IRAs, and
- Savings Incentive Match Plans for Employees (SIMPLEs), under which sponsors provide participants with SIMPLE IRAs.
The notice also covers traditional and Roth IRAs, but these are generally individually owned.
The two plans mentioned are popular with many small and midsize employers because they’re generally easier and less expensive to maintain than, say, a traditional 401(k) plan. The IRS extension aims to help such organizations catch up and avoid compliance issues from outdated paperwork — a credible threat given how frequently the rules have changed.
Indeed, it’s important to note that the deadline extension applies to amendments required under not only the most recent SECURE 2.0, but also the earlier SECURE Act, CARES Act and even the largely forgotten Relief Act of 2020. In other words, Notice 2026-9 addresses the cumulative effect of several years’ worth of legislative updates.
Timely opportunity
Like many employers, your organization may have already implemented some or all of the operational changes required by these laws. But have you formally updated your plan document? Many employers have fallen behind on this crucial compliance matter.
Although the deadline has been pushed to the end of next year, don’t let procrastination win the day if your plan document still needs to be updated. In fact, you might think of IRS Notice 2026-9 as a timely opportunity to both review and revise your plan document and assess how well your retirement arrangement is working.
The truth is, while the deadline extension applies to the timing of written amendments, employers are still expected to operate their plans in compliance with applicable laws as the various changes take effect. The distinction matters. The IRS can deem a plan out of compliance even if the employer-sponsor intends to fix it later — especially if improper administration has occurred. For example, rules regarding eligibility, contributions or distributions may have changed in ways that materially affect employee-participants’ benefits.
Bottom line: The extended amendment deadline provides breathing room, but it doesn’t eliminate the need for proper administration. Now’s a good time to confirm that your organization or its third-party administrator is tracking and implementing the required updates, and that your plan document has been amended accordingly.
Sound move
Sponsoring an IRA-based retirement plan can be a sound move for many small- and midsize-employers. But even seemingly minor compliance mistakes can lead to big headaches. If you have a SEP or SIMPLE IRA plan, The CJ Group’s Employee Benefit Plan experts can help evaluate its operation and identify required amendments. We can also assist you in deciding whether another type of retirement plan may now be a better fit for your organization.
© 2026
