Nood1e

It's probably because the funds aren't priced at the beginning of the day, but at the end. With January 1 being a holiday, the 1/1/2020 listed balance is actually the balance at market close on 1/2/2020, which would only match the 12/31/2019 balance if the underlying instruments didn't change in value at all from 12/31 to 1/2 - very unlikely.

I worked for the American Funds for 14 years in a retirement plans management role, and find this "explanation" to be pure B.S.

I'll keep that in mind - thanks.

I've answered my own question - I was overthinking it.

My thanks to all who have chimed in.

Thanks for the response - just a owner / spouse 401(k). I'm thinking that once the relationship is severed, it's severed, and he can do what he wants. I don't see successor plan issues. Probably safer just to wait until 1/1/2019 unless he really has his heart set on getting a deduction for the last month or two of the year.

This is a husband and wife plan. The husband is an adopting employer. They’re getting a divorce that will be effective November 2018. The client would like to begin setting up a separate plan for her husband. Can he adopt a plan’s in the same year in which he is already an adopting employer of an existing plan? Or would it best to make the new one effect 1/1/2019?