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The IRS recently issued updated Section 402(f) safe-harbor explanations (Notice 2026-13) (PDF 367 KB) that modify those previously provided in Notice 2020-62. Section 402(f) requires qualified retirement plans and certain other tax-favored plans (e.g., 403(b) and governmental 457(b) plans) to provide certain information to recipients of eligible rollover distributions.
The modifications reflect certain legislative changes made by the SECURE 2.0 Act and recommendations in a recent Government Accountability Office (GAO) report, which examined the effectiveness of Section 402(f) notices in helping participants understand their distribution options and associated tax consequences.
The notice includes two model safe-harbor explanations for this purpose: one for distributions from a designated Roth account, and the other for distributions that are not from such an account.
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