N-2020-62: Safe Harbor Explanations – Eligible Rollover Distributions

August 7, 2020 IRS Newsroom Tax

Notice 2020-62: Administrators of qualified retirement plans are required to provide a written explanation of tax consequences when making distributions that are eligible for rollover. The explanation is often referred to as the “402(f) notice” after the relevant section of the Internal Revenue Code governing the requirement, or simply as the “special tax notice.” The IRS has historically provided “safe harbor” model notices that plan administrators may rely upon to satisfy the requirement. The IRS periodically updates the notice based on changes in the law. The last IRS notice being Notice 2018-74, 2018-40 I.R.B. 529. Notice 2020-62 modifies the two model notices in Notice 2018-74, that may be provided to recipients of eligible rollover distributions to satisfy the notice requirements under section 402(f).  The model notices as modified by this Notice 2020-62 take into consideration certain legislative changes, including changes related to the Setting Every Community Up for Retirement Enhancement Act of 2019, Pub. L. 116-94 (“SECURE Act”).


It will appear in IRB 2020-35 dated Aug. 24, 2020.

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