In Notice 2014-74 (the “Notice”), the Internal Revenue Service (the “IRS”) amends the two safe harbor explanations in Notice 2009-68. Those explanations can be used to satisfy the requirement under Code section 402(f) that certain information be provided to recipients of eligible rollover distributions. These amendments relate to the allocation of pre-tax and after-tax amounts, distributions in the form of in-plan Roth rollovers, and certain other clarifications to the two safe harbor explanations. The Notice also includes two new, complete model notices which can be used to satisfy section 402(f), and which incorporate the amendments. The Notice indicates that the amendments to the safe harbor explanations, and the included model notices, may be used for plans that apply the guidance in section III of Notice 2014-54, with respect to the allocation of pretax and after-tax amounts.
Published By Stanley D. Baum, New York ERISA attorney, Of Counsel at Cary Kane LLP Handling matters in ERISA, employee benefits, disability, and employment law for employers, individuals and unions.