Notice requirements
(A) In general
(A)In general#
The administrator of a plan containing an arrangement described in paragraph (3) shall, within a reasonable period before each plan year, give to each employee to whom an arrangement described in paragraph (3) applies for such plan year 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.
(A)(i)#
is sufficiently accurate and comprehensive to apprise the employee of such rights and obligations, and
(A)(ii)#
is written in a manner calculated to be understood by the average employee to whom the arrangement applies.
(B)Time and form of notice#
A notice shall not be treated as meeting the requirements of subparagraph (A) with respect to an employee unless—
(i) the notice includes an explanation of 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) the employee has a reasonable period of time after receipt of the notice described in clause (i) and before the first elective contribution is made to make such election, and
(iii) the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the employee.
(B)(i)#
the notice includes an explanation of 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),
(B)(ii)#
the employee has a reasonable period of time after receipt of the notice described in clause (i) and before the first elective contribution is made to make such election, and