Treasury, IRS Propose 5-Step 401(k) Rollover System Under Notice 2026-49

2 articles · Updated · UExpress · Aug 21

Notice 2026-49 proposes a standardized five-step process for direct rollovers between retirement plans or from a plan to an IRA, shifting coordination from workers to the sending and receiving institutions.
A new rollover identification number, assigned by the receiving plan, would track each transfer across all communications and support the new sample forms required under the 2022 SECURE 2.0 Act.
Treasury and the IRS said the overhaul targets long-standing inefficiencies flagged by GAO reports in 2013 and 2024, including paper checks, inconsistent verification rules and the burden on workers who may change jobs 10 or more times.
IRA-to-IRA transfers are excluded because they usually already move through FINRA's Automated Customer Account Transfer Service, which uses a standard electronic protocol.
Comments on the proposal are due by Oct. 23, 2026, and the agencies said they are considering additional guidance on rollover procedures.

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UExpress 4d ago

Treasury, IRS Issue Guidance (Notice 2026-49) to Simplify 401(k) Rollovers

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