Recent proposed guidance from IRS would provide model forms for use by qualified plans and individual retirement accounts in administering participant rollovers. IRS Notice 2026-49 (“Notice”), which implements provisions of the SECURE 2.0 Act, is intended to streamline the process of direct rollovers to or from eligible retirement plans by using model procedures and sample forms. The proposed forms are intended to ease administrative burdens and make the process more secure with respect to personal data. However, use of the forms would not be mandatory, and plans would be free to continue using their own forms and procedures consistent with applicable law. Use of the model forms also would not constitute a safe harbor under the proposed guidance, though the Notice advises that IRS may consider creating a safe harbor based on comments it receives from stakeholders.
Current law requires that a plan use reasonable procedures in administering a request by a participant for a direct rollover of their account but does not otherwise require specific forms or procedures. Section 324 of the SECURE 2.0 Act of 2022 directs IRS to issue guidance on simplifying the process of rollovers through the use of sample forms, which must be designed to be understood by the average person and to be used by both the distributing plan and receiving plan of the rollover. In the Notice, IRS states that the Government Accountability Office has identified inefficiencies and lack of uniformity among retirement plans’ rollover processes, and advises that the model forms and procedures are intended to promote several goals, including protection of personal identifying information; easing burdens on participants through coordination and communication between plans; use of common terminology; plan verification of information accuracy and legitimacy of rollover requests; and increased use of electronic communications and rollovers.
Under the proposed process outlined in the sample forms, the participant would submit a rollover request to the receiving plan, which would assign a rollover identification number (RIN) and request the rollover from the distributing plan. The distributing plan would then verify the request and certify the rollover. The forms do not address other legal requirements, such as spousal consent and required minimum distribution rules.
The Notice states that the sample forms are intended for qualified retirement plan rollovers, including direct rollovers to and from IRAs, but not for IRA-to-IRA rollovers or transfers.
The comment deadline for the proposed guidance is October 23, 2026. Please contact Slevin & Hart if you have any questions regarding this proposed guidance.
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