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Retirement compliance news for July 2025

Retirement plan compliance news: July 2025
Filing Relief for Natural Disasters Act

Congress passed the Filing Relief for Natural Disasters Act (H.R. 517) which allows the Internal Revenue Service (IRS) to grant state-declared disaster relief and automatically extend deadlines for federally declared disasters for certain deadlines. This applies to disaster declarations made after the law’s enactment.

IRS Authority

Congress passed the Filing Relief for Natural Disasters Act (H.R. 517) which allows the Internal Revenue Service (IRS) to grant state-declared disaster relief and automatically extend deadlines for federally declared disasters for certain deadlines. This applies to disaster declarations made after the law’s enactment.

The new law would allow the IRS to also grant deadline extensions in the event of a qualified state disaster.

A qualified state disaster occurs when a state’s Governor officially declares a natural catastrophe to be a state disaster. This may include, but is not limited to, hurricanes, tornadoes, drought, or fires that cause significant damage to areas of the state.

IRS Authority

Currently, federally declared disasters extend certain deadlines for 60 days. The new law would extend this period to 120 days. This applies to the following deadlines:

  • Filing individual tax returns
  • Making contributions to qualified retirement plans and IRAs
  • Distributing excess IRA contributions
  • Recharacterizing IRA contributions
  • Completing 60-day rollovers