IRS Issues Updated Safe Harbor Rollover Notices
•February 4, 2026
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Why It Matters
Updated notices are essential for plan sponsors to avoid penalties and maintain participant confidence, while reflecting the latest SECURE 2.0 legislative changes.
Key Takeaways
- •IRS Notice 2026‑13 supersedes 2020‑62 safe harbor notices
- •Reflects SECURE 2.0 changes to distribution rules
- •Updates in‑service distribution, penalty exceptions, RMD thresholds
- •Plan sponsors must revise notices for compliance
- •Future notices will address Saver’s Match provisions
Pulse Analysis
The IRS’s safe‑harbor rollover notices serve as a compliance bridge between retirement plan sponsors and participants, fulfilling the statutory requirement of section 402(f) to disclose rollover options and tax consequences. By issuing Notice 2026‑13, the agency not only updates the template language but also aligns it with the sweeping reforms introduced by SECURE 2.0. This alignment reduces ambiguity around in‑service distributions, clarifies early‑withdrawal penalty exceptions, and adjusts required minimum distribution calculations, thereby helping plans avoid costly misinterpretations.
SECURE 2.0’s legislative tweaks have reshaped the retirement landscape, especially for high‑net‑worth employees and small‑balance participants. The new notice raises the dollar threshold for small lump‑sum distributions, expands permissible in‑service distribution scenarios, and refines the penalty‑exception matrix for qualified hardships. These changes influence plan design decisions, such as whether to offer more flexible distribution windows or to adjust vesting schedules. For fiduciaries, the updated language provides a clearer audit trail, demonstrating that participants received accurate, up‑to‑date information.
Practically, plan sponsors should initiate a comprehensive review of their existing rollover notices, collaborating with legal counsel and third‑party administrators to integrate the revised text. Customization remains permissible, allowing sponsors to omit irrelevant sections while adding plan‑specific explanations, provided they stay consistent with section 402(f). Looking ahead, the IRS has hinted at forthcoming notices to incorporate Saver’s Match contributions under Code 6433, underscoring the need for ongoing monitoring. Proactive updates now will mitigate compliance risk and reinforce participant trust as retirement regulations continue to evolve.
IRS Issues Updated Safe Harbor Rollover Notices
Retirement plan sponsors should take note of new IRS safe harbor rollover notices
As a reminder, section 402(f) of the Internal Revenue Code requires retirement plan administrators to provide recipients of eligible rollover distributions with a written explanation of their rollover options and the associated tax consequences.
On January 15, 2026, the IRS issued Notice 2026‑13 (https://www.erisapracticecenter.com/wp-content/uploads/sites/42/2026/02/n-26-13.pdf), which includes updated safe harbor rollover notices reflecting changes enacted by the Setting Every Community Up for Retirement Enhancement Act of 2022 (“SECURE 2.0”). The updated notices replace the safe harbor notices set forth in IRS Notice 2020‑62.
The new notices incorporate legislative changes made after August 6, 2020, including updates relating to:
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in‑service distribution options,
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exceptions to the 10 % early withdrawal penalty,
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required minimum distribution rules, and
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the increased dollar threshold for small lump‑sum distributions.
Next steps
Retirement plan sponsors should work closely with their plan administrators and counsel to review and update their rollover notices to align with Notice 2026‑13 and to ensure continued compliance with section 402(f) notice requirements. As with prior versions of the safe harbor notices, the IRS has indicated that plan administrators may customize the notices to omit information not applicable to the plan and to include additional explanations that are not inconsistent with section 402(f).
Because the updated notices reflect only those SECURE 2.0 provisions that were effective as of January 15, 2026, further revisions will be required in the future to reflect provisions that take effect later, such as Code section 6433, which establishes Saver’s Match contributions effective for taxable years beginning after December 31, 2026. The IRS has indicated that it anticipates issuing updated notices in the future to address those changes.
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