No 402(f) notice provided

[Oh so SIMPLE]

What is the fix for a situation where plan directly rolled to a former employee's IRA (which the former employee wanted), but such was done before providing a 402(f) notice was given, and nothing in writing was given explaining that the employee had the alternative of a lump sum payout?

[Bird]

Say "oops" and move on to the next item of pressing business?

Is someone complaining?

[mbozek]

What is the fix for a situation where plan directly rolled to a former employee's IRA (which the former employee wanted), but such was done before providing a 402(f) notice was given, and nothing in writing was given explaining that the employee had the alternative of a lump sum payout?

Why is it important to know what should have been done but was not done?.

[Oh so SIMPLE]

Trying to keep the plan in compliance, both with its terms and pension rules, and qualifying for tax deferral (and the rollovers thus eligible for rollover, and not subject to the 6% tax). 402(f)(1) provides "The plan administrator of any plan shall, within a reasonable period of time before making an eligible rollover distribution, provide a written explanation to ... ." The plan specifies too that a direct rollover notice is to be provided in advance of distribution.

[mbozek]

Trying to keep the plan in compliance, both with its terms and pension rules, and qualifying for tax deferral (and the rollovers thus eligible for rollover, and not subject to the 6% tax). 402(f)(1) provides "The plan administrator of any plan shall, within a reasonable period of time before making an eligible rollover distribution, provide a written explanation to ... ." The plan specifies too that a direct rollover notice is to be provided in advance of distribution.

I dont understand why the 6% tax would be applicable. The participant requested a rollover and the funds rolled over were the tax deferred funds of the participant. Therefore there was no excess contribution. Only penalty for failure to provide 402f notice is some nominal amunt say $100. 402f is not a qualification requirement. At most failure to provide 402f notice would be an audit issue.