PPA inherited IRA: Plan policy notification requirments?

[Guest jackstpaul]

I'm a non-spouse beneficiary of 401(k). I'm wondering about Plan requirements to notify participants re: the new inherited IRA rollover to non-spouses option in PPA.

My plan hasn't made any written notification to participants or put one on their website about their policy of handling non-spousal distributions to inherited IRA. On the phone I've been told that they don't allow it--PPA makes it optional for plans to do or not. I'm not sure I'm getting accurate info from Plan.

I need to make my distribution-type decision by Feb. 15. I'll lose $20,000 in taxes if not able to roll to inherited IRA.

Are plans required to notify what their policy is--here and for any new changes or relating to new laws even if opting out, and what are terms of any given requirement?

[Belgarath]

The plan sponsor is not required to provide notification that they will not be adopting this optional provision.

If the plan sponsor amends the language to permit such rollovers, they would either provide a Summary of Material Modification, or a new Summary Plan Description. Either way, it is possible/likely that the plan sponsor won't make a decision prior to February 15th.

I suspect that many/most plan sponsors will ultimately allow this, but they often aren't in any particular hurry - it is one more potential added complexity/expense that they may not want to bother with.