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richard

Waiting period for lump sum reduced from 30 days to 7 days

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What was the law/regulation/IRS Notice or other that allows pension plans to pay lump sums with a 7 day waiting period rather than forcing the employee to wait 30 days?

(I understand the plan doesn't have to be amended to provide for the 7-day waiting period until the end of the remedial amendment period. But, it can be operated with the 7-day wait if appropriate notice is provided.)

What is the content of the waiver notice that the plan must give the employee (and spouse, if applicable) to take advantage of the 7 day wait? Is this content in electronic format?

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The Reg. is 1.417(e)-1T(B)(3). The reg predates Code section 417(a)(7).

To use this option, you have to add the material in (B)(3)(ii)(A) to your notices.

There's nothing in the Regs. about supplying the notice electonically. This issue remains under study by the IRS.

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