would black out notice be required?

[Guest EDSAADE]

participant in directed 401(k) account locks himself out from access to misplacing of security password. Upon contacting investment firm and Hr dept he is told that new password will be issued in two days via mail. No other method of transfering funds is given to participants.

Is this covered by Sarbanes Oxley act? Participant will be locked out of hte market for at least four days.

[WDIK]

No other method of transfering funds is given to participants.

Are you certain that the investment firm will not accept written or verbal direction from the participant? It would seem logical that there is some sort of backup system.

[Guest EDSAADE]

absolutely positive no other method

[ljr]

Not allowing anything other than VRU or Web is typical in the large plan market.

[WDIK]

From the Sarbanes-Oxley Act

4) BLACKOUT PERIOD- For purposes of this subsection, the term `blackout period', with respect to the equity securities of any issuer--

(A) means any period of more than 3 consecutive business days during which the ability of not fewer than 50 percent of the participants or beneficiaries under all individual account plans maintained by the issuer to purchase, sell, or otherwise acquire or transfer an interest in any equity of such issuer held in such an individual account plan is temporarily suspended by the issuer or by a fiduciary of the plan; and

[Guest Bud]

I don't think it's a blackout. The definition of blackout in 2520.101-3(d)(1)(ii)(D) excludes suspension, limitation, or restriction which occurs by reason of an act or a failure to act on the part of an individual participant or by reason of an action or claim by a party unrelated to the plan involving the account of an individual

participant.