Notification for removing loan

[emmetttrudy]

Is there a participant notice requirement for removing loan provision from a 401k Plan?

[Lou S.]

Give out an SMM

[emmetttrudy]

But there is no requirement, for example, that you have to notify them 15 or 30 days before the change takes effect, right?

[12AX7]

Generally, you would have 180 days from the end of the plan year in which the amended provision takes effect, to distribute a new SMM. However, in the interest of promoting good plan administrator practices, I would notify the participants as soon as possible either with an SMM or by memo.

[Belgarath]

I think what you are asking is whether there is a special advance notice requirement, similar to a 204(h) notice. The answer is no.

I agree with the prior posters that it is good practice to notify participants as soon as possible, and of course do a SMM.