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IRS Issues Final Regulations on Electronic Plan Administration
Washington, DC, February 15, 2000 - The Internal Revenue Service has issued final regulations on the standards for electronic transmission of notices and consents required in connection with qualified retirement plan distributions. The final regulations make only minor changes to the standards set forth in the proposed regulations.
The regulations permit (1) electronic delivery of the Section 3405 withholding notice, the Section 411(a)(11) notice of distribution options and the right to defer distributions, and the Section 402(f) rollover notice; (2) electronic transmission of participant consent to distributions under Section 411(a)(11); and (3) provision of the Sections 411(a)(11) and 402(f) notices more than 90 days before a distribution in cases where the plan provides a summary of the notice within 90 days before the distribution. The regulations are effective for plan years beginning on or after January 1, 2001.