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If my employer is required to return excess 401k pretax contributions due to not meeting the discrimination test, are they required to notify me BEFORE making the refund or selling funds/stock in my account?

An unsuspecting group of us had this happen for the first time this year. Although we might not agree on the IRS regulation, we understand it exist.

Our funds holdings were sold and withdrawn from our accounts prior to any notification by the company or plan administrator that any refund was going to happen.

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    Assuming that there had been zero warnings, what would you have done if they had told you 30 days before the disbursement?
    – mhoran_psprep
    Commented Mar 24, 2017 at 10:10
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    @mhoran_psprep: Perhaps decide which investments to sell, or when to sell them?
    – Nate Eldredge
    Commented Mar 25, 2017 at 18:11

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They legally have to provide you with the Form 1099-R as you have money leaving the plan that (normally) has to be taxed. Past that, I'm not aware of any legal responsibility to proactively let you know about the excess and refund.

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