Q: What is IRS Notice 2020-23?
IRS Notice 2020-23 is a regulation issued by the Internal Revenue
Service regarding the deadline for certain acts that must be
performed by taxpayers. For NYCERS purposes, IRS Notice 2020-23
allows members to defer payment on any outstanding loan that is
not in default for the period from April 1, 2020 to July 15,
2020. This regulation also extends the deadline to complete a
rollover of an eligible distribution.
Q: Who can take advantage of loan deferment under IRS Notice
Any NYCERS member with an outstanding loan that is not in default
may request loan payment deferment under IRS Notice 2020-23.
There are no qualification requirements for this deferment.
Q: How can I get a deferment on paying my NYCERS loan under IRS
NYCERS is working on a deferment form for members, which will be
available on our website shortly. Until then, please send a
letter requesting deferment under IRS Notice 2020-23. You may
also submit a Service Request in your secure MyNYCERS account.
Q: Is interest charged during the IRS Notice 2020-23 deferment
Interest does not accrue while your loan is deferred pursuant to
IRS Notice 2020-23.
Q: Does IRS 2020-23 eliminate payment of loan insurance?
IRS Notice 2020-23 does not eliminate payment of loan insurance
during the deferment period; by law, your loan must remain
insured. Your loan insurance premium for the deferment period
will be added to your outstanding loan balance when your payments
Q: Can I benefit from this loan deferment if my loan is already
No. You cannot defer payments under IRS Notice 2020-23 if your
loan is already in default.
Q: How will this affect the 5-year repayment limit if I take a
deferment under IRS Notice 2020-23?
The loan must still be repaid within 5 years, which may result in
Q: What happens if I don’t repay the loan?
Failure to make required payments on your loan once the deferment
period has ended will place your loan in default, and the
outstanding loan balance will be reported to the Internal Revenue
Service as income.
Q: How does IRS Notice 2020-23 affect my rollover of an eligible
If the deadline for you to complete the rollover of an eligible
distribution falls between April 1, 2020 and July 14, 2020, you
have an extension until July 15, 2020 to complete the rollover.