Regulatory & Compliance | 08.12.26

IRS Proposes Simpler Process for Retirement Rollovers

by: James Van Bramer

plansponsor (08/12/26) James Van Bramer

The U.S. Treasury Department and Internal Revenue Service (IRS) proposed a standardized process to make retirement rollovers easier, faster and more consistent under the SECURE 2.0 Act. IRS Notice 2026-49 outlines standardized forms and procedures for moving savings between workplace retirement plans and certain IRAs, with plans communicating more directly rather than relying on participants to handle transfers themselves. The proposal encourages encrypted communications, unique rollover identification numbers and electronic fund transfers, while reducing reliance on paper checks. If electronic transfers are unavailable, checks would generally be made payable to and sent directly to the receiving plan. The procedures would initially be voluntary, although Treasury and the IRS are considering future requirements that could further limit paper checks and encourage electronic transfers. Public comments are being accepted through Oct. 23.

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