IRS Notice 2019-49, which extends through 2020 the nondiscrimination relief for closed defined benefit plans provided in IRS Notice 2014-5 and extended by Notices 2015-28, 2016-57, 2017-45, and 2018-69 (see Legal Update, IRS Notice 2019-49 Extends Temporary Nondiscrimination Relief for Closed Defined Benefit Plans Through 2020).

IRS Notice 2019-60, which provides additional nondiscrimination relief for certain closed defined benefit plans with respect to the requirement that all benefits, rights, and features of a plan must be currently and effectively available to all participants (see Legal Update, IRS Notice 2019-60 Provides Additional Temporary Nondiscrimination Relief for Certain Closed Defined Benefit Plans).

The limit on the maximum automatic deferral rate for a qualified automatic contribution arrangement (QACA) has been increased from 10% to 15% (10% for the participant's first year of participation) (Section 102 of the SECURE Act).

The notice requirement for nonelective employer contribution safe harbor 401(k) plans has been eliminated, and plan sponsors may adopt a nonelective 401(k) safe harbor plan at any time before the 30th day before the close of the plan year (Section 103 of the SECURE Act).

Defined contribution plans and 403(b) plans may permit certain transfers and distributions of lifetime income investment options if the lifetime income investment is no longer authorized to be held as an investment option under the plan (Section 109 of the SECURE Act).

Employees of a tax-exempt organization controlled by or associated with a church (regardless of whether the organization is a "qualified church-controlled organization") may participate in Internal Revenue Code (Code) Section 403(b)(9) (26 U.S.C. § 403(b)(9)) retirement income accounts (Section 111 of the SECURE Act). This clarification is effective for plan years beginning before, on, or after December 20, 2019, which was the date of enactment of the SECURE Act. This is listed on the Operational Compliance List as effective in 2016, 2017, 2018, and 2019.

Participants may take a penalty-free withdrawal of up to $5,000 from qualified retirement plans (except defined benefit plans) within one year after the birth or legal adoption of a child. This change is effective for distributions after December 31, 2019. (Section 113 of the SECURE Act.)

The required beginning date for required minimum distributions (RMDs) from a retirement plan has been increased from age 70.5 to 72, and this change is effective for RMDs for individuals turning age 70.5 after December 31, 2019. (Section 114 of the SECURE Act.)

Qualified foster care payments that are difficulty of care payments under Code Section 131 (26 U.S.C. § 131) are treated as compensation for purposes of the annual contribution limit for defined contribution plans (Section 116 of the SECURE Act). The difficulty of care payments provision is effective for plan years that begin after December 31, 2015. This change is listed on the Operational Compliance List as effective in 2016, 2017, 2018, and 2019.

The Operational Compliance List includes nondiscrimination, coverage, and minimum participation relief for frozen defined benefit plans that exclude new hires (Section 205 of the SECURE Act). This relief took effect on December 20, 2019, but plan sponsors can apply it retroactively to plan years beginning after December 31, 2013. This change is listed on the Operational Compliance List as effective in 2016, 2017, 2018, and 2019.

For defined contribution plans, after the death of a participant, amounts now must be distributed to a non-spouse beneficiary by the end of the tenth calendar year following the year of the participant's death, with exceptions for certain beneficiaries (Section 401 of the SECURE Act). This is effective for distributions made for participants dying after December 31, 2019 (a later effective date may apply to governmental plans and collectively bargained plans, or in other special circumstances).

The SECURE Act provides relief from the anti-cutback rule of Code Section 411(d)(6) for amendments to any retirement plan or annuity contract under a SECURE Act provision or regulations under the Act (Section 601 of the SECURE Act).

Section 108 of the SECURE Act provides that loans from qualified retirement plans to participants using a credit card or other similar arrangement are prohibited effective in 2019.

Under Section 202 of the Taxpayer Certainty and Disaster Tax Relief Act, qualified disaster distributions are allowed if the distribution is made on or after the first day of the incident period of a qualified disaster and within 180 days after December 20, 2019. The limits on plan loans during a disaster period are increased for loans made during the 180-day period beginning on December 20, 2019. This change is listed on the Operational Compliance List as effective in 2018 and 2019.

Under Section 205 of the Taxpayer Certainty and Disaster Tax Relief Act, the deadline for making contributions to retirement plans or plan rollovers is extended during federally declared disasters declared after December 20, 2019.