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Full Version: When/how to send special tax notice for after-tax withdrawals?
BenefitsLink Message Boards > Retirement Plans > 401(k) Plans
khartford
If your 401(k) plan allows paperless withdrawals of after-tax contributions at any time, when/how do you provide the special tax notice so that it is timely (30-180 days before distribution)?
GMK
One way is to have the IT people add a pop-up or scroll window that displays the notice when the participant requests a distribution,

and also displays a box that the participant clicks on to check the box, which is next to the "I have read (or I have received) the tax notice" statement.

Another interactive check box could be next to an "I waive the 30 day waiting period" statement.

For the historical records, the site must log all the check marks and the date they were checked.

In addition, if "I have received the notice" is not checked, the site presents a message explaining that the participant has to check the box before the distribution can be made, and if the "waive 30 days" is not checked, another message explaining that the distribution cannot be made within the next 30 days unless the waiver box is checked.

or maybe there's a simpler way.
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