IRS Issues Guidance on Rollovers

The Internal Revenue Service (IRS) has issued new guidance on rollovers in Notice 2014-54 and proposed regulations. Generally, if participants roll over a portion of their accounts and also have a portion paid to them, each of those amounts will include a share of any earnings in the participant’s designated Roth account. The IRS indicates that it received comments that some plan providers were structuring distributions in a way whereby all of the after-tax amounts were included in distributions to Roth IRAs.

Notice 2014-54 is available here.
The proposed regulations are available here.

ERIC members and trial members can read more here.