EPCRS

[rlb64]

If the plan administrator merely forgets to hand a 401(k) enrollment form and spd at time of entry to a new participant, does the IRS view this is an operational failure, subject to the required employer QNEC. The participant didn't know her rights under the plan, but she was never denied the opportunity to enroll.

[jpod]

I don't think there is an official statement from IRS on this issue, anywhere. However, I believe it is implicit in the law and the regulations, let alone the text of the EPCRS Rev. Proc., that some minimal effort is required to inform a newly-eligible participant of his or her right to participate.

[Guest Pensions in Paradise]

The participant didn't know her rights under the plan, but she was never denied the opportunity to enroll.

Doesn't this sentence contradict itself?? If the participant didn't know her rights under the plan, then how is she supposed to know she could enroll?

As jpdo said, it is the responsibility of the sponsor to inform participants when they are eligible for the plan.