The Internal Revenue Code requires pension plan administrators to inform plan participants of the income tax options available to them in advance of receiving a distribution which might be rolled over to another plan or an IRA. A written notice must be given to such participants no more than 90 days and no fewer than 30 days before such a distribution.
The IRS is required by law to provide taxpayers with a model notice which fulfills this Code requirement. The Service has recently issued an updated model "Special Tax Notice Regarding Plan Payments" in IRS Notice 2000-11. The notice is available over the Internet at www.fedworld.gov/pub/irs-regs/no200011.pdf or call Jim Buschmann at our Detroit office for a faxed copy.