In Notice 2026-13 (the “Notice”), IRS gives us an updated model 402(f) rollover notice for qualified plans (replacing Notice 2020-62) that covers SECURE 2.0 Act and other statutory changes that are currently effective. The Notice looks a bit different because it has also been updated to address the U.S. Government Accountability Office (GAO) recommendations to provide a clearer explanation of the key distribution options – (1) keep in plan, (2) rollover to new employer's plan or an IRA, or (3) take a lump sum distribution – and related tax consequences. The Notice also summarizes the various statutory changes to plan distributions since the last model notice was issued, including changes to 72(t) (10% early withdrawal tax), required minimum distribution (RMD) changes, investment in collectibles, and increased cashout limit.  

As usual, there are two model notices: one for Roth accounts and one for non-Roth accounts. The model notices are deemed to satisfy Code section 402(f) for legal changes through January 15, 2026, and they should be put into use as soon as administratively practicable. Here are a few observations from an initial read of the new model notices: 

• a table of contents has been added (which makes it longer)
• various new exceptions to the early withdrawal tax are covered, including pension-linked emergency savings accounts and qualified long-term care distributions (although the rollover language was not changed for these special distributions)
• additional references to other IRS publications have been added

Lastly, the Notice also encourages (although not legally required) the benefits community to distribute the 402(f) notice on termination of employment, when the participant is facing an important decision about retirement savings.

Thanks IRS for the updated notice!