IRS Updates Rollover Notices for Retirement Plans

The IRS has released updated model rollover notices for retirement plans to reflect changes made by the SECURE Act 2.0. Retirement plans must provide recipients of eligible rollover distributions with explanations about the tax consequences of the rollover and their eligible rollover options. The notices must be provided within a reasonable time after the distribution (no less than 30 days and no more than 180 days prior to the distribution). The IRS has provided two safe harbor notice options: one for Roth accounts and another for any other eligible rollover. Using the safe harbor notices is optional. Plan sponsors may elect to make changes to the model notices or create their own explanations entirely. The updated notices, however, can provide plans with important guidance on what will be considered sufficient in terms of disclosures about the SECURE Act changes. For more information on the rules governing retirement account rollovers, visit Tax Facts Online. Read More: Link to Q3710. Note: Q is updated.