Search the Community

Hi To All, Who would like to settle a tiny difference of opinion in our office? One of us thinks that Plan Characteristic Code 2T would apply to ALL such plans (with participant directed accounts) as those maintained by John Hancock, American Funds, Mass Mutual, Lincoln et al because there is a mechanism of some sort in dealing with money belonging to participants who never made a fund election. It won't just sit in cash. Typically it goes to a Target Date fund based on the participants' birthdays but it could be something else. So wouldn't all such plans automatically check 2T on the 5500? The other person in our office thinks that 2T only applies if there actually are participants who have defaulted into the automatic investment. He thinks that merely having the provision is not enough; there must actually be such people in the plan. What do the experts say? Thanks!