Special Tax Notice - 402(f)

[Nassau]

Can someone point me to the Code or Regulations where it would say that a Recordkeeper/Trustee is required to provide a participant with the special tax notice prior to processing a participants distribution. Thanks.

[GMK]

This may help:

http://www.irs.gov/pub/irs-drop/n-09-68.pdf

[Lou S.]

If a participant is to receive a distribution, the plan must provide the participant with a notice explaining the rollover rules. If the distribution is an eligible rollover distribution, the participant must receive an IRC section 402(f) notice.

http://www.irs.gov/retirement/article/0,,id=135668,00.html

Along the same lines as GMKs link.

[four01kman]

I believe it is the Plan Sponsor who is responsible for providing the notice. That said, many recordkeepers/administrators provide the notice as part of their service agreement. I would check to see who has agreed to do what services for what appropriate compensation.

[austin3515]

Nassau -

You referenced the exact paragraph of the internal revenue code that creates this requirement in your subject - 402(f).

See paragrpah (f)

http://www.law.cornell.edu/uscode/html/usc...02----000-.html