Black out notice for pooled accounting

[Jim Chad]

I have a 401(k) plan with pooled accounting. I provide quarterly valuation and statements. Participants can only make invesment changes, take loans and take distributions quarterly. We are changing mutual fund families. Is a black out notice needed?

[R. Butler]

If a participant cannot take diversify investments, obtain a loan or receive a distribution during the period in question the blackout notice isn't needed. I'd be careful though, we have a handful of balance forward plans where although loans &/or distributions may be based on the last quarters balance, they still can be taken at any time.

[Brian Gallagher]

The blackout notice only needs to be provided if the people OTHERWISE would have had access to the money or to make changes. If they couldn't NORMALLY do anything during the time of the switch, you should be okay not doing the notice.

[Guest macheide]

Do remember that regularly scheduled restrictions must have been disclosed to the participants through SPDs and other plan documents in order to escape characterization as a blackout period. See §2520.101–3(d)(1)(ii)(B).