Issue Number: 2026-18Inside This Issue
Guidance available on rollovers between retirement plans and accounts
Treasury and the IRS are providing guidance to simplify and standardize the rollover process between retirement plans and individual retirement accounts and for both participants and plan sponsors. Notable proposed changes include:
- Scope: Applies to rollovers between retirement plans or between a retirement plan and an individual retirement account, but not to IRA-to-IRA transfers.
- Design: Sample forms designed to protect participants’ personal identifying information and minimize participants’ burden.
- Optional use: Use of the sample forms and proposed procedures is optional for plan sponsors.
Comments from stakeholders on sample forms and proposed regulations are due by Oct. 23, 2026, through Regulations.gov.
For more details see Notice 2026-49. Back to Top
Coming soon: New proposed regulations for the Saver’s Match program
Treasury and the IRS will propose regulations regarding the federal Saver’s Match program, which begins in 2027. The Saver’s Match will provide eligible taxpayers with a maximum 50% match on the first $2,000 of qualified retirement savings contributions made to an employer-sponsored retirement plan or IRA, up to $1,000 annually, and will be paid for eligible taxpayers starting in 2028, based on contributions made for the 2027 tax year. This replaces the Saver’s Credit for retirement savings contributions and helps taxpayers participate in eligible retirement savings programs. Notice 2026-48 outlines anticipated rules for implementing the program and request public comments to help develop proposed regulations. Comments can be submitted at Regulations.gov by October 5, 2026. Back to Top
Disaster tax relief available in Mississippi, West Virginia and Northern Mariana Islands
Below is information about recent disaster related tax relief granted by the IRS.
- Businesses and individuals affected by Tropical Storm Arthur in Mississippi that began on June 18, 2026, now have until Feb. 1, 2027, to file various federal business and individual tax returns and make tax payments.
- Businesses and individuals affected by severe storms, tornadoes and flooding in West Virginia including Pleasants and Ritchie counties that began on July 21, 2026, now have until Feb. 1, 2027, to file various federal business and individual tax returns and make tax payments.
- Businesses and individuals affected by Super Typhoon Bavi in Northern Mariana Islands that began on July 4, 2026, now have until Feb. 1, 2027, to file various federal business and individual tax returns and make tax payments.
The IRS automatically identifies taxpayers located in covered disaster areas and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS Special Services toll-free number at 866-562-5227 to request this tax relief.
The Tax relief in disaster situations page on IRS.gov has the most recent information for taxpayers affected by a disaster. Back to Top
Update to FAQs on “No Tax on Overtime” deduction
The IRS recently updated the FAQs about the “No Tax on Overtime” Deduction under the Working Families Tax Cuts. Some important points for business taxpayers include:
- The removal of information that was applicable only to the 2025 tax year
- Clarification on the limits and timing of the qualified overtime compensation deduction
- Additional information on coverage and exemptions under the FLSA
- Detailed information on Form W-2, Form 1099-MISC, and Form 1099-NEC requirements applicable to employers and payors of qualified overtime compensation
- Information on federal income tax withholding procedures related to qualified overtime compensation
- Information on the requirement that qualified overtime compensation must be separately reported on Form W-2 to claim the deduction
Full details are available in Fact Sheet 2026-13. Back to Top
Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
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