Employer Bulletin: Your Plan Administration Resource

Updates to Safe Harbor Language for IRS 402(f) Special Tax Notice

Periodically, the IRS will release updates to the safe harbor language for the 402(f) Special Tax Notice. Their latest update was released in September 2018.

No action is needed by plan sponsors. ICMA-RC has made the necessary updates to the 402(f) Special Tax Notice. However, if you have previously printed forms that included the Special Tax Notice, you will need to print the new version. A best practice would be to only print forms when they are needed to ensure the latest version is being used. This will help avoid delays in processing distributions if an older form is used.

Most of the changes added further clarification for handling non-Roth (i.e., pre-tax) and Roth (after-tax) assets and minor wording changes to add clarification to certain sections.

You may access a current version of the 402(f) Special Tax Notice at this link.