Updated Model IRS Rollover Notices Released

The IRS has made updates to “its ‘safe harbor explanations’ for eligible rollover distributions to reflect recent statutory changes and IRS guidance”.

Plan sponsors must provide terminated employees with assets in a qualified retirement plan an explanation of rollover options once the employee terminates.

This can be in the form of the IRS’s model notice, or employers can provide a custom notice.

The new model notices, last updated in 2014, include changes to plan loan offset amounts, information on deadlines and extensions, and clarification of governmental plans.

One change outlined by JD Supra is the Extended Deadline for Rollovers for Federally-Declared Disasters:

The new model notice explicitly mentions that taxpayers that are affected by federally declared disasters and other events may have an extended deadline for making rollovers. For example, those impacted by Hurricane Florence have until January 31, 2019, to complete a rollover.

For more details on these changes, please click here.

The information included in this blog post originally appeared in an article in JD Supra on October 8, 2018, written by Eric Gregory of Dickinson Wright PLLC.


Learn More About Our HR Related Services