Scuba 401

The Regs for 404© say that a current prospectus must be furnished to a participant after he makes an ivestment in a fund. is it sufficient to give them to the Plan Administrator and have the participants get one from the Plan Administrator whent they make the investment?

The Regs specifically provide that if you want to be "404© compliant, you are required to furnish a statement that the plan is a 404© Plan. There are also several other things that must be contained in that statement. See ERISA Reg. 2550.404©-1

We took over a plan that was "allegedly" amended 4 years ago from a fiscal year to a calendar plan year. 5500's have been filed utilizing the amended dates since that time. however, the amendment cannot be located. Is there a mechanism for doing another amendment clarifying the situation other then APRSC or CAP.

I dont know whether it is allowed or not but covered call writing is the most conservative of all options strategies. the stock holder (participant) is simply selling an option on stock that he has in his account. he gets a premium and the purchaser of the option makes a bet that the stock is going to go up. if it does, the holder of the option gets to buy the stock from the option writer (participant). thus, the writer of the option (participant) is only losing what he would have made from the upside move in the stock. if the stock does not move, the participant keeps the stock and the option premium.

I was able to locate an article by Bruce Ashton from Reish & Luftman (it is posted on their website in the ERISA Report for Plan Sponsors) on the subject. His position is that the plan fiduciary will be ok as long as they follow the requirements of 404© with regard to the "core plan assets." I have mixed feeling on this subject and would be like to hear more feedback.

Are there any articles or opinions concerning potential liability of a fiduciary for the poor investment decisions of participants made in the Self Directed Brokerage option of a 401(k). Isn't this is really giving the participant the ultimate freedom of choice under 404©.

Does anyone know if there is more authority out there concerning 12(B)-1 and sub t/a fees besides the two DOL opinions (Frost and Aetna)?

What would be the first day of the plan year for a plan that has been spunoff from an existing plan? The document actually specifies the spinoff date as a valuation date.