Notice requirements
(i) In general
(i)In general#
The requirements of this subparagraph are met if, within a reasonable period before each plan year, each employee eligible to participate in the arrangement for such year receives written notice of the employee’s rights and obligations under the arrangement which—
(I) is sufficiently accurate and comprehensive to apprise the employee of such rights and obligations, and
(II) is written in a manner calculated to be understood by the average employee to whom the arrangement applies.
(i)(I)#
is sufficiently accurate and comprehensive to apprise the employee of such rights and obligations, and
(i)(II)#
is written in a manner calculated to be understood by the average employee to whom the arrangement applies.
(ii)Timing and content requirements#
A notice shall not be treated as meeting the requirements of clause (i) with respect to an employee unless—
(I) the notice explains the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf (or to elect to have such contributions made at a different percentage),
(II) in the case of an arrangement under which the employee may elect among 2 or more investment options, the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the employee, and
(III) the employee has a reasonable period of time after receipt of the notice described in subclauses (I) and (II) and before the first elective contribution is made to make either such election.
(ii)(I)#
the notice explains the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf (or to elect to have such contributions made at a different percentage),
(ii)(II)#
in the case of an arrangement under which the employee may elect among 2 or more investment options, the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the employee, and