EACA permissible withdrawal in a blackout period

[Kimberly S]

We're discussing potential issues for automatic enrollment plans that transfer between service providers as we design our internal procedures. Has anyone seen any guidance about what to do if an autmatically enrolled participant's 90 day window for withdrawal falls during a black out period?

[Belgarath]

Interesting question! No, I haven't. I think I'd tell them to extend the 90 day period - in spite of there being no regulatory support that I know of, it seems the only remotely reasonable solution.

[DTH]

Proposed regulations state that the particiapnt must make an election to withdraw no later than 90 days after the date the first deferral is taken from pay under the EACA. Ihe regs.don't say when the plan must make the actual payment.

As long as the plan administrator has the election form by the 90-day deadline, it appears the actual distribution can wait until after blackout. However, if the plan has a QDIA, it must be paid within the 120-day window. We are under good faith compliace, will be interesting to see what the final regs state.