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Final Regs Allow 401(k) Plans To Provide E-Notices; Conform To E-SIGN Act

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in Human Resources,Office Management

401(k) plans have long been able to use automated phone systems, e-mail, and the Internet to provide required notices and allow employees to make elections and consent to distributions. Final regulations now give plans the option of conforming to the Electronic Signatures in Global and National Commerce Act, otherwise known as the E-SIGN Act, or sticking to their current electronic systems. The regs also expand the plans that may communicate electronically, to include health plans and health savings accounts, cafeteria plans, educational assistance plans, and plans that provide qualified transportation fringe benefits. The regs are effective for notices provided to employees on or after January 1, 2007.

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