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You can take it with you, but read this first, please

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in Office Management,Payroll Management

Departing employees may take the pretax contributions they made into their 401(k) or 403(b) accounts with them when they leave, but you must first provide them with a notice of their rollover options. The IRS has updated the model safe-harbor notices you can use for this purpose. Note: The notices begin on page 7.

What’s new: The amended notices contain information relating to the allocation of pretax and after-tax amounts, distributions of in-plan Roth rollovers and more specific information regarding distributions from auto-enrollment plans. (Notice 2014-74, IRB 2014-50)

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