What I found with a recent 401(k) merger I worked on was target date mapping helped speed up the deposit and allocation to participant accounts of new payroll contributions. This was because the new record keeper could use the employee's date of birth that was uploaded with the census prior to the BO period to default the new payroll contributions into the age appropriate Vanguard Target Retirement portfolio, without waiting for the records from the old record keeper that had the prior employee investment allocations. This allowed deposit of the new payroll contributions within the 7 business day window that the DOL has as a safe harbor for small plans under 100 participants.
Marc LaRhette, AIFA®, CEBS ,CFP®, CPFA
Partner
StarkMiller FBG
3650 Mt. Diablo Blvd., Suite 104
Lafayette, CA 94549
Phone: (510) 839-4852
Cell: (925) 200-8046
Toll Free: (866) 730-1970
Fax: (510) 839-4853
E-mail: mlarhette@starkmillerfbg.com
Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc., Member FINRA, SIPC and Registered Investment Advisor. Insurance services provided by Stark Miller Financial Benefits Group not affiliated with Woodbury Financial Services, Inc.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP(R), CERTIFIED FINANCIAL PLANNER(tm) and federally registered CFP (with flame design) in the U.S. , which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
