Help with Summary Annual Report requirements!

[Guest lkramer]

I am relatively new to 401(k) administration, but I had understood that a SAR was REQURIED to be sent from the employer to participants in their 401(k) plan within 9 months after the end of a plan year.

My current company has told me that the SAR is only required to be sent to participants if you have sent it in the past. Therefore, because we have never sent a SAR to particpants, we are not required to do so now. We do have it available upon request.

Can anyone shed some light on this?

[Guest Richard Scheer]

You are correct, your employer is wrong. Check ERISA Section 104 and Regulation 2520.104b-10.

The report must be furnished to all plan participants each year. This includes actives, terminated vesteds and retirees. For actives, you can post the notice in public area of the workpace instead of mailing it, as long as everyone has access to the site.

[david rigby]

DOL Reg. that describes the SAR, including sample language:

http://www.dol.gov/dol/allcfr/Title_29/Par...520.104b-10.htm

[Guest UKH]

You are also able to distribute the SAR electronically. However you would need some kind of receipt notification. example: return receipt electronic mail.

The paper copy must be available and the participant has the right to receive it free of charge.

This is as per DOL Reg 2520.104b-1, 64 F.R. 4505 (January 28, 1999).