IRS Amends Safe Harbor Explanations for Rollovers

The Internal Revenue Service (IRS) has amended the two safe harbor explanations that can be used to satisfy the requirement that certain information be provided to recipients of eligible retirement plan rollover distributions.

The amendments and model notices are issued following the IRS’ new guidance for allocating pre-tax and after-tax amounts among distributions that are made to multiple destinations from a qualified plan. The amendments to the safe harbor explanations and attached model notices may be used for plans that apply the guidance in section III of Notice 2014-54 with respect to the allocation of pre-tax and after-tax amounts.

Amendments to the safe harbor explanations also address in-plan Roth rollovers and certain other clarifications to the two safe harbor explanations.

The amendments and model notices are found in IRS Notice 2014-74.