Plan's AFTAP is 100%. Participant age 55 can elect early retirement and either start pension or defer to later start date. The lump sum option is available.

Question: Should election package disclose the risk of deferring the start date election that a full or any lump sum may not be distributable in a later year?

Is disclosure of this risk required? Probably not.

Was the 401a4 High25 risk disclosed in the past? Probably not.

Will this be the first participant who does not elect an immediate lump sum? Probably not.

Was not thinking about this from a requirement perspective. Rather, thinking about a disgruntled employee with an attorney creating a nuisance because you didn't tell him that by deferring, he might be relinquishing option to receive lump sum.

The high 25 was at least (possibly) alluded to in the SPD. I agree a good job may not have in general been done in communicating this restriction.

High 25 is not mentioned in our typical 23 page SPD, nor in our 3 page "Common Questions".

I'm not an attorney so only poach upon the printed word but perhaps they should. See Reg. 2520-102-3(k)(1).