Do You Have to Receive an IRS Explanation When Rolling Over a 401(k) or IRA? — What Notice 2026-13 Actually Requires
“I’m changing jobs and moving my retirement money — can’t I just open a new account and transfer it?”
This is one of the most common rollover questions I hear from U.S. taxpayers preparing their 2025 tax return (filed in 2026).
The short answer: when retirement funds are distributed or rolled over, the IRS requires that you receive a standardized explanation.
That requirement is now finalized under IRS Notice 2026-13, and skipping or misunderstanding it can quietly increase your tax and penalty exposure.
This article reflects IRS guidance finalized in February 2026, including the final version of Notice 2026-13 (Safe Harbor Explanations).
1️⃣ What changed under Notice 2026-13?
When retirement funds leave a tax-deferred account — such as a 401(k), 403(b), or traditional IRA — the plan administrator or financial institution must provide a standardized IRS explanation.
Notice 2026-13 finalizes the content of that explanation, often referred to as the “Safe Harbor Explanation.”
The document explains, in plain language, how rollover choices affect:
taxation, mandatory withholding, early distribution penalties, and required minimum distributions (RMDs).
Importantly, it incorporates SECURE Act 2.0 updates, including current RMD age guidance — now 73 for most taxpayers, with future increases to 75 for younger cohorts.
This notice isn’t paperwork for the IRS — it’s documentation that protects you by showing that rollover choices were made with full disclosure.
2️⃣ Who does this rule apply to?
This requirement is not limited to high-income taxpayers or retirees.
It applies whenever retirement funds are distributed or moved between accounts.
- Applies to: Job-change rollovers, retirement distributions, plan-to-plan transfers
- Does not apply to: Internal investment changes within the same plan (no distribution)
If money leaves the plan — even temporarily — rollover rules are triggered.
Simply “planning to reinvest later” does not pause the tax clock.
3️⃣ Real-world rollover example (EA perspective)
- Scenario: New York resident, age 45, receives a $100,000 401(k) check after leaving a job
- Risk: If the funds are not deposited into an IRA within 60 days,
the entire amount becomes taxable income - Additional exposure: Potential 10% early-distribution penalty
(up to $10,000), unless an exception applies - EA guidance: A direct rollover between institutions avoids withholding,
timing errors, and unnecessary audit risk
4️⃣ Common mistakes & quick checklist
- Mistake #1: Holding a rollover check too long and missing the 60-day deadline
- Mistake #2: Attempting to roll over funds that are already classified as RMDs
- Mistake #3: Mixing pre-tax and Roth funds without verifying contribution sources
- Confirm whether the transaction is a direct rollover
- Verify receipt of the Safe Harbor Explanation (email, mail, or portal)
- Determine whether the 60-day rule applies
5️⃣ Related links
6️⃣ FAQ
- Do I have to receive a Safe Harbor Explanation?
Yes. It is required whenever a retirement distribution or rollover occurs, ensuring you understand tax withholding, penalties, and rollover options. - Can I complete a rollover if I never received one?
The rollover may still proceed, but missing documentation weakens your position if the IRS later questions the transaction. - Where do I get this explanation?
It is provided by the plan administrator or financial institution — often through an online portal, email, or mailed distribution packet.
This article is based on U.S. federal tax law and IRS guidance in effect as of February 2026.
State tax treatment may differ. Tax outcomes depend on individual circumstances.
Consult a qualified tax professional before applying this information.