A DC plan has adopted cash-out forfeiture provisions, and as required the plan allows repayment of distributions to restore forfeited benefits.
The question is, upon re-hire, is any notice required to be provided to the employee about their ability to buy-back the forfeited benefit by repaying the cash-out distribution? The regs at 1.411(a)-7(d) do not contain a notice requirement, and I've checked a few reference manuals that do not speak to any required notice. However, I'm working with an accountant who believes a notice is required. SUch a notice would seem fair (especially since this is not described well in the SPD).
If anyone is aware of any authorities regarding participant notices in this situation, I would appreciate any information you can provide. Thanks.
Full Version: Cash-out rules
No notice is required. If the accountant feels otherwise, have him/her provide you with a cite.
Of course, there is nothing to prevent you from providing such a notice if you so desire.
Of course, there is nothing to prevent you from providing such a notice if you so desire.
QUOTE (Pensions in Paradise @ Jan 18 2007, 05:49 PM) 
Of course, there is nothing to prevent you from providing such a notice if you so desire.
... providing the plan administrator does so on a non-discriminatory basis.
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