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Showing results for tags '402(f)'.
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The Treasury department’s rule under Internal Revenue Code § 402(f) calls for an administrator to deliver a § 402(f) written explanation “no less than 30 days . . . before the date of [the] distribution.” Internal Revenue Code § 6652(i) imposes a penalty of $100 on each failure to deliver a § 402(f) written explanation. To speed up a plan termination’s final distribution, an administrator is considering deliberately incurring that penalty. In the circumstances, that amount is much less than the business harm that would result from not completing the plan’s termination by December 30. I’ve already analyzed ERISA title I consequences, including about the fiduciary’s potential obedience and prudence breaches. Is it so that an administrator’s compliance with § 402(f) is not a § 401(a) condition for a plan’s tax-qualified treatment? (The plan’s governing document does not state any provision or command based on § 402(f).) Am I missing something?