The notice offers interim guidance in a Q&A format on sections 414(aa) and 402(c)(12) of the Internal Revenue Code, introduced by the SECURE 2.0 Act. Section 414(aa) deals with the requirements for handling inadvertent benefit overpayments under sections 401(a) and 403, while section 402(c)(12) addresses the treatment of these overpayments as eligible rollover distributions. The guidance explains how these sections affect the Employee Plans Compliance Resolution System (EPCRS), as outlined in Revenue Procedure 2021-30. EPCRS is a system of correction programs for employer-sponsored retirement plans, including methods for correcting overpayments. The notice aims to assist taxpayers with interim guidance but does not provide comprehensive instructions on sections 414(aa) and 402(c)(12).
The Treasury Department and the IRS invite comments on the guidance provided in this notice and other aspects of sections 414(aa) and 402(c)(12), including their interaction with other provisions of the SECURE 2.0 Act. The guidance is interim and subject to further refinement based on feedback from stakeholders.
