IRS Modifies Model Rollover Notices

  • September 20, 2018

On September 18, 2018 the IRS issued Notice 2018-74 which updated and revised the model notices that retirement plan administrators are required to provide to recipients of eligible rollover distributions.  The model notices apply to 401(k) plans, both Roth and Non-Roth accounts/plans, as well as certain plans sponsored under Sections 403(b) and 457 of the Internal Revenue Code.

The safe harbor explanations and notices update the language required in the existing law since the last model language notice published in IRS Notice 2014-74.  These changes take into account safe harbor explanations that reflect relevant law changes since December 8, 2014.

Included in the updated Notices are provisions relating to:

  • Extended rollover period for qualified plan loan offset amounts up to the individual’s tax filing due date (including extensions) for the taxable year in which the offset occurs.
  • Exception to the 10% additional tax under IRC Section 72(t) on early distributions from a government retirement plan for qualified public safety employees who have reached age 50 (better defines the eligible public safety and protection officers).
  • Establishes language for the self-certification provisions for the waiver of the 60-day rollover period for eligible individuals (located in disaster areas, military deployment, etc.).
  • Defines and extends a reasonable period within which a plan administrator or payer must provide the rollover notices.

For more information about the above please contact Whitney Wallingford at [email protected] or Brian Ritchie at [email protected] or at (859) 219-0066.