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Pension Resource

Treas. Reg. § 1.402(f)-1

Required explanation of eligible rollover distributions; questions and answers.
CFR 1999 annual edition (revised as of 1999-04-01) · superseded Apr 1, 2000 · last amended by T.D. 8619, 60 FR 49213, Sept. 22, 1995
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The following questions and answers concern the written explanation requirement imposed by section 402(f) of the Internal Revenue Code of 1986 relating to distributions eligible for rollover treatment. Section 402(f) was amended by section 521(a) of the Unemployment Compensation Amendments of 1992, Public Law 102-318, 106 Stat. 290 (UCA). For additional UCA guidance under sections 401(a)(31), 402(c), 403(b)(8) and (10), and 3405(c), see §§ 1.401(a)(31)-1, 1.402(c)-2, 1.403(b)-2, and 31.3405(c)-1 of this chapter, respectively.
List of Questions

Q-1: What are the requirements for a written explanation under section 402(f)?

Q-2: When must the plan administrator provide the section 402(f) notice to a distributee?

Q-3: Must the plan administrator provide a separate section 402(f) notice for each distribution in a series of periodic payments that are eligible rollover distributions?

Q-4: May a plan administrator post the section 402(f) notice as a means of providing it to distributees?

Questions and Answers
Q-1: What are the requirements for a written explanation under section 402(f)?
A-1: (a) General rule. Under section 402(f), as amended by UCA, the plan administrator of a qualified plan is required, within a reasonable period of time before making an eligible rollover distribution, to provide the distributee with the written explanation described in section 402(f) (section 402(f) notice). The section 402(f) notice must be designed to be easily understood and must explain the following: the rules under which the distributee may elect that the distribution be paid in the form of a direct rollover to an eligible retirement plan; the rules that require the withholding of tax on the distribution if it is not paid in a direct rollover; the rules under which the distributee may defer tax on the distribution if it is contributed in a rollover to an eligible retirement plan within 60 days of the distribution; and if applicable, certain special rules regarding the taxation of the distribution as described in section 402(d) (averaging with respect to lump sum distributions) and (e) (other rules including treatment of net unrealized appreciation). See § 1.401(a)(31)-1, Q&A-7 for additional information that must be provided if a plan provides a default procedure regarding the election of a direct rollover.
(b) Model section 402(f) notice. The plan administrator will be deemed to have complied with the requirements of paragraph (a) of this Q&A-1 relating to the contents of the section 402(f) notice if the plan administrator provides the applicable model section 402(f) notice published by the Internal Revenue Service for this purpose in a revenue ruling, notice, or other guidance published in the Internal Revenue Bulletin. See § 601.601(d)(2)(ii)(b) of this chapter.
(c) Delegation to Commissioner. The Commissioner, in revenue rulings, notices, and other guidance, published in the Internal Revenue Bulletin, may modify, or provide any additional guidance with respect to, the notice requirement of this section. See § 601.601(d)(2)(ii)(b) of this chapter.
(d) Effective date
(1) Statutory effective date. Section 402(f) applies to eligible rollover distributions made after December 31, 1992.
(2) Regulatory effective date. This section applies to eligible rollover distributions made on or after October 19, 1995. For eligible rollover distributions made on or after January 1, 1993 and before October 19, 1995, § 1.402(c)-2T, Q&A-11 through 15 (as it appeared in the April 1, 1995 edition of 26 CFR part 1), apply. However, for any distribution made on or after January 1, 1993 but before October 19, 1995, a plan administrator or payor may satisfy the requirements of section 402(f) by substituting any or all provisions of this section for the corresponding provisions of § 1.402(c)-1T, Q&A-11 through 15, if any.
Q-2: When must the plan administrator provide the section 402(f) notice to a distributee?
A-2: The plan administrator must provide a distributee with the section 402(f) notice no less than 30 days and no more than 90 days before the date of distribution. However, if the distributee, after having received the section 402(f) notice, affirmatively elects a distribution, a plan will not fail to satisfy section 402(f) merely because the distribution is made less than 30 days after the section 402(f) notice was provided to the distributee, provided that the following requirement is met. The plan administrator must provide information to the distributee clearly indicating that (in accordance with the first sentence of this Q&A-2) the distributee has a right to consider the decision of whether or not to elect a direct rollover for at least 30 days after the notice is provided. The plan administrator may use any method to inform the distributee of the relevant time period, provided that the method is reasonably designed to attract the attention of the distributee. For example, this information could be provided either in the section 402(f) notice or stated in a separate document (e.g., attached to the election form) that is provided at the same time as the notice. For purposes of satisfying the requirement in the first sentence of this Q&A-2, the plan administrator may substitute the annuity starting date, within the meaning of § 1.401(a)-20, Q&A-10, for the date of distribution.
Q-3: Must the plan administrator provide a separate section 402(f) notice for each distribution in a series of periodic payments that are eligible rollover distributions?
A-3: No. In the case of a series of periodic payments that are eligible rollover distributions, the plan administrator is permitted to satisfy section 402(f) with respect to each payment in the series by providing the section 402(f) notice prior to the first payment in the series, in accordance with the rules in Q&A-1 and Q&A-2 of this section, and providing the notice at least once annually for as long as the payments continue. However, see § 1.401(a)(31)-1, Q&A-12 for additional guidance if the plan administrator intends to treat a distributee's election to make or not make a direct rollover with respect to one payment in a series of periodic payments as applicable to all subsequent payments in the series (absent a subsequent change of election).
Q-4: May a plan administrator post the section 402(f) notice as a means of providing it to distributees?
A-4: No. The posting of the section 402(f) notice will not be considered provision of the notice. The written notice must be provided individually to any distributee of an eligible rollover distribution within the time period described in Q&A-2 and Q&A-3 of this section.
Source credit, amendments & notes

[T.D. 8619, 60 FR 49213, Sept. 22, 1995]

Treas. Reg. § 1.402(f)-1 — Required explanation of eligible rollover distributions; questions and answers. · CFR 1999 annual edition (revised as of 1999-04-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr26-1.402%28f%29-1&asof=1998-09-03 · printed Oct 16, 2026
On this page
  • (b) Model section 402(f) notice.
  • (c) Delegation to Commissioner.
  • (d) Effective date
Implements
I.R.C. § 402 Taxability of beneficiary of employees' trust
Cited by (code & regs)
Guidance addressing this section

No documents are primarily about this section.

Also cited in 21 other documents
IRS / Treasury
Notices
  • Notice 2026-13 Feb 2, 2026 — Safe Harbor Explanations – Eligible Rollover Distributions
  • Notice 2020-62Superseded Aug 24, 2020 — Safe Harbor Explanations – Eligible Rollover Distributions
    Superseded by Notice 2026-13
  • Notice 2009-68 Sep 28, 2009 — Safe harbor explanations — eligible rollover distributions. This notice contains two safe harbor explanations that may be provided to recipients of eligible ro…
  • Notice 2005-5 Jan 18, 2005 — Automatic rollover; section 657 of Economic Growth Tax Relief and Reconciliation Act of 2001. This notice provides guidance in question and answer format on th…
Final Rules
  • 89 FR 58886 Jul 19, 2024 — Required Minimum Distributions
Proposed Rules
  • 89 FR 4215Proposed Jan 23, 2024 — Request for Information-SECURE 2.0 Section 319-Effectiveness of Reporting and Disclosure Requirements Comments due Apr 22, 2024
  • 87 FR 10504Proposed Feb 24, 2022 — Required Minimum Distributions Comments due May 25, 2022
  • REG-107318-08Proposed Nov 10, 2008 — Proposed regulations provide that the notice required under section 411(a)(11) of the Code to be provided to a participant of his or her right, if any, to defe…
  • REG-138362-04Proposed Aug 15, 2005 — Proposed regulations under section 401 of the Code provide guidance on the use of electronic media to provide certain notices to recipients or to transmit part…
Revenue Procedures
  • Rev. Proc. 2014-6 Jan 2, 2014 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
  • Rev. Proc. 2013-6 Jan 2, 2013 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
  • Rev. Proc. 2012-6Superseded Jan 3, 2012 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2013-6
  • Rev. Proc. 2011-6Superseded Jan 3, 2011 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2012-6
  • Rev. Proc. 2010-6Superseded Jan 4, 2010 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2011-6
  • Rev. Proc. 2009-6Superseded Jan 5, 2009 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2010-6
  • Rev. Proc. 2008-6Superseded Jan 7, 2008 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2009-6
  • Rev. Proc. 2007-6Superseded Jan 2, 2007 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2008-6
  • Rev. Proc. 2006-6Superseded Jan 3, 2006 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2007-6
  • Rev. Proc. 2005-6Superseded Jan 3, 2005 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2006-6
  • Rev. Proc. 2004-6Superseded Jan 5, 2004 — Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under section…
    Superseded by Rev. Proc. 2005-6
Treasury Decisions
  • T.D. 9294 Nov 27, 2006 — Final regulations under section 401 of the Code set forth standards for electronic systems that make use of an electronic medium to provide a notice to a recip…

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Private Letter Rulings (1)
Also cite this provision (1)
  • PLR 201446032 Nov 14, 2014 — Rollover Contributions UIL 402.08-00

Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Apr 1, 1997Mar 31, 2000CFR 1999 annual edition (revised as of 1999-04-01) run 127T.D. 8619, 60 FR 49213, Sept. 22, 1995View
Apr 1, 2000Mar 31, 2001CFR 2000 annual edition (revised as of 2000-04-01) run 127T.D. 8873, 65 FR 6005, Feb. 8, 2000View · Redline (sign in)
Apr 1, 2001Mar 31, 2007CFR 2006 annual edition (revised as of 2006-04-01) run 127T.D. 8873, 65 FR 6005, Feb. 8, 2000View · Redline (sign in)
Apr 1, 2007Mar 31, 2008CFR 2007 annual edition (revised as of 2007-04-01) run 127T.D. 9294, 71 FR 61887, Oct. 20, 2006View · Redline (sign in)
Apr 1, 2008currenteCFR editorial change effective 2016-05-18 run 2T.D. 9340, 72 FR 41159, July 26, 2007View · Redline (sign in)
Provision-level history (blame)