What is the purpose of "mandated notices" in a 401(k) plan?

The purpose of "mandated notices" in a 401(k) plan is to disclose participants’ rights and responsibilities under the plan. This requirement is rooted in the need for transparency and informed decision-making for employees participating in retirement plans. By providing these notices, plan administrators ensure that participants are fully aware of their entitlements, such as eligibility requirements, the process for contributions, investment options, and withdrawal policies. This not only empowers participants to make informed choices regarding their retirement savings but also helps in maintaining compliance with regulatory obligations, ensuring that participants are treated fairly and informed about their financial futures.

Other options, while they may involve some form of communication related to the retirement plan, do not align with the core intent of mandated notices. Therefore, the correct choice directly addresses the essential information that participants need to successfully navigate their rights and responsibilities in the context of their 401(k) plan.