Amendments to increase benefit accruals under plan for previous plan year allowed until employer tax return due date

(a) In general Section 401(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Retroactive plan amendments that increase benefit accruals If— (A) an employer amends a stock bonus, pension, profit-sharing, or annuity plan to increase benefits accrued under the plan effective for the preceding plan year (other than increasing the amount of matching contributions (as defined in subsection (m)(4)(A))), (B) such amendment would not otherwise cause the plan to fail to meet any of the requirements of this subchapter, and (C) such amendment is adopted before the time prescribed by law for filing the return of the employer for a taxable year (including extensions thereof) during which such amendment is effective, the employer may elect to treat such amendment as having been adopted as of the last day of the plan year in which the amendment is effective.. (b) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2025.