January 1st is a participant entry date for many plans. Noble-Davis Consulting strives to keep you updated on employees that have met the requirements to enter your plan. When possible, we will send you a list of employees that may have met these requirements. These lists are based on the most recent census information given to us. It is important that you, as the plan sponsor, verify the eligibility of the newly eligible participants since we may have incomplete data.

Newly eligible participants are required to receive many notices before they enter the plan. The list includes:

  • Deferral election form (if applicable)
  • Investment election form (if applicable)
  • Beneficiary designation form
  • Summary Plan Description
  • Safe Harbor notice (if applicable)
  • Automatic Contribution Arrangement notice (if applicable)
  • Qualified Default Investment Alternative notice (if applicable)
  • Participant fee disclosure ((if applicable)
  • Investment comparative chart (if applicable)

If you use us as your recordkeeper, all of these forms are updated as needed and available in a Participants Enrollment Guide which is posted on our Plan Sponsor Link portal.

It is very important to give these materials to newly eligible participants. In a 401(k) plan, if they are not given a chance to make elective deferrals then there are financial consequences to the plan sponsor. The sponsor may have to contribute money to the participant’s account to make up for the lost deferral opportunity.

Let us know if we can help in any way with your newly eligible employees!