Penalty for untimely 402(f) notice.

[KJohnson]

Under 402(f) a notice becomes "stale" if a distribuiton is not made within 90 days of the notice. I have looked under 401(a)(31) and the regs, and it does not appear that the failure to send a 402(f) notice in a timely fashion is a qualifcation failure under 401(a) (except for certain default election procedures in 1.401(a)(31) Q&A 7 ---and I realize there also might be plan document issues).

Has anyone ever looked into whether making a distribution in, say, the 100th day after receipt of a 402(f) noice is a qualfication failure or whether the only penalty is that imposed under 6652(i)?

[Blinky the 3-eyed Fish]

I thought there was a period for reasonable delay that could allow the distribution to extend past the 90 days. Sorry, for the lack of specifics, but I haven't had to look into it for a long while.