IRS Issues Rollover Guidance Under SECURE 2.0

The IRS has issued Notice 2026-49, providing rollover guidance in accordance with section 324 of SECURE 2.0. Section 324 directed the Treasury and IRS to develop and issue guidance to simplify, standardize, and expedite rollovers to eligible retirement plans and trustee‑to‑trustee transfers from IRAs. The notice applies to rollovers between retirement plans and IRAs, but not to IRA-to-IRA transfers.

The IRS has developed four model forms and associated procedures intended to meet Congress' directive. The IRS is not currently providing safe harbors based on the use of the sample forms, and indicates use of the forms is optional. The guidance notes that “consistent with federal policy that favors the use of electronic payments, plans are encouraged to complete rollovers electronically”, and further suggests that forms and procedures should be integrated into an Application Programming Interface or used on a clearinghouse or other electronic platform.

Comments are invited no later than October 23rd. The Treasury Department and the IRS are considering additional guidance that would further enhance procedures under section 324 of SECURE 2.0, including the following.

• Guidance amending Treasury Regulations to remove the option allowing paper checks to be sent to participants to complete a direct rollover.

• Guidance that would require administrators and trustees to complete rollovers via electronic transfers or paper checks mailed or sent directly to the receiving plan.

• Guidance providing for new safe harbors based on sample forms similar to those included in the Notice. The safe harbors would be limited to the transferability of a rollover and not to any requirements that apply to a distributing plan in making a distribution.

• Guidance providing that certain additional practices constitute impermissible procedures. For example, the guidance could clarify that requiring use of a Medallion Signature Guarantee or distribution letters and other burdensome requests would be impermissible. In addition, guidance could provide that it is impermissible for a distributing plan to prevent a participant from choosing to complete a rollover via electronic transfer to a receiving plan, assuming both plans have capability for such an electronic transfer.