The IRS and Treasury recently issued Notice 2026-13, which provides two safe harbor explanations that retirement plan administrators can use to satisfy the requirement under Sec. 402(f) to provide certain information to recipients of eligible rollover distributions.
The first safe harbor explanation applies to non-Roth accounts, and the second safe harbor explanation applies to Roth accounts. The modifications to the safe harbor explanations take into consideration certain legislative changes made by the SECURE 2.0 Act of 2022 and implement a recommendation from the U.S. Government Accountability Office, the IRS said.
The notice also addresses, among other things, changes to the 10% additional tax on early withdrawals from retirement plans, the required minimum distribution rules for surviving spouses, and the increased age for determining required beginning dates for required minimum distributions. Read more.