Retirement Plan Year-End Participant Notices

Defined contribution plan administrators need to meet one or more annual participant notification requirements, usually provided just prior to the new plan year. Plans having auto-enrollment (whether EACU, QACA, or traditional) all have an annual notification requirement of that automatic feature. As most 401(k) and 403(b) plans have a qualified default investment alternative (QDIA), often a target date fund (TDF), an additional or combined notification is required for that auto-investment feature. Failure to issue a required annual notice can have significant consequences. Plus, there are many other disclosure requirements for defined contribution plans, like annual fee and lifetime income disclosures. It’s quickest to satisfy these notifications electronically, where possible, if the electronic notifications rules are satisfied.

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Related Content

• QDIA Notice
  Review how the QDIA notice, informing participants that their auto-contributions (and other contributions for which they may have failed to provide investment instruction) must be provided to eligible employees prior to plan eligibility and annually thereafter.
• Electronic Disclosure Rules for Benefit Plans Comparison Chart
  Reference this flowchart to review how to satisfy the U.S. Department of Labor's safe harbors when using electronic technology, like use of a web portal or email delivery, to comply with ERISA’s disclosure requirements.

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