NOTICE AND CONSENT PERIOD REGARDING DISTRIBUTIONS.

SEC. 1102. NOTICE AND CONSENT PERIOD REGARDING DISTRIBUTIONS.(a) Expansion of Period.—(1) Amendment of internal revenue code.—(A) In general.—Section 417(a)(6)(A) of the Internal Revenue Code of 1986 is amended by striking “90-day” and inserting “180-day”.(B) Modification of regulations.—The Secretary of the Treasury shall modify the regulations under sections 402(f), 411(a)(11), and 417 of the Internal Revenue Code of 1986 by substituting “180 days” for “90 days” each place it appears in Treasury Regulations sections 1.402(f)–1, 1.411(a)–11(c), and 1.417(e)–1(b).(2) Amendment of erisa.—(A) In general.—Section 205(c)(7)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055(c)(7)(A)) is amended by striking “90-day” and inserting “180-day”.(B) Modification of regulations.—The Secretary of the Treasury shall modify the regulations under part 2 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 relating to sections 203(e) and 205 of such Act by substituting “180 days” for “90 days” each place it appears.(3) Effective date.—The amendments and modifications made or required by this subsection shall apply to years beginning after December 31, 2006.(b) Notification of Right To Defer.—(1) In general.—The Secretary of the Treasury shall modify the regulations under section 411(a)(11) of the Internal Revenue Code of 1986 and under section 205 of the Employee Retirement Income Security Act of 1974 to provide that the description of a participant’s right, if any, to defer receipt of a distribution shall also describe the consequences of failing to defer such receipt.(2) Effective date.—(A) In general.—The modifications required by paragraph (1) shall apply to years beginning after December 31, 2006.(B) Reasonable notice.—A plan shall not be treated as failing to meet the requirements of section 411(a)(11) of such Code or section 205 of such Act with respect to any description of consequences described in paragraph (1) made within 90 days after the Secretary of the Treasury issues the modifications required by paragraph (1) if the120 STAT. 1057 plan administrator makes a reasonable attempt to comply with such requirements.