The IRS has released Notice 2026-13, which includes two updated safe harbor notices for recipients of eligible rollover distributions from various types of retirement plans. These IRS special tax notices — sometimes referred to as “section 402(f) notices” — reflect changes made under the Setting Every Community Up for Retirement Enhancement Act of 2022 (SECURE 2.0 Act). Plan administrators determine which of the two notices to provide to participants depending on whether the distribution is from a designated Roth account.
The updated notices reflect certain legislative changes, including:
In addition, a new paragraph has been added to the notices clarifying the options generally available to plan participants receiving eligible rollover distributions (e.g., leaving the savings in their former employer’s plan or rolling them over to a new employer’s plan or individual retirement account). Other minor modifications were also made to improve clarity, including adding a table of contents.
The notices are only required to be distributed before a participant’s benefits begin to be paid (which often is many years after the participant terminates employment). However, although not required by law, Notice 2026-13 encourages plan administrators to provide the safe harbor notices to participants when they first terminate. This recommendation is intended to ensure that participants have information about distribution options at the point in time when they are facing an important decision about retirement savings.
Employers should work with their retirement plan recordkeepers and other service providers to update their special tax notices as soon as administratively feasible.
