Timing of distribution notice

[Guest ChuckLakeshore]

When is the latest you must send notice to a participant that will be receiving a distribution? I've read the regs and I'm still unsure.

[david rigby]

A bit more background please.

Are you asking about a distribution on plan termination, on retirement, on termination(vested), lump sum payment, spousal consent, direct rollover, etc.?

[Guest ChuckLakeshore]

Notification of distribution on termination if vested.. no matter how they leave the company...

[david rigby]

When a participant terminates employment and has a vested (deferred) benefit, the sponsor must notify participant by the time of filing the 5500 for the plan year following the plan year of termination.

Example, assume a calendar plan year, so that the 5500 is due (with extensions) at 10/15 following close of plan year. If EE terminates on 2/25/98, then the notification to EE must be made by 10/15/2000. If EE terminates on 12/15/98, then the 10/15/2000 due date also applies.