Who gets interest earned on 401(k) assets between plan termination and

[Guest David Smith]

My employer terminated our 401(k) plan as part of a being acquired by another firm. Plan assets (mutual fund investments) were liquidated at the end of Sep. 1999 and rollover checks mailed at the end of Nov. 1999. Questions:

1. Do regulations specify how plan proceeds must be held during period between asset liquidation and disbursement? Can the employer, for exapmle, place the money in an interest bearing account?

2. If income was earned on plan monies during this timeframe, which party (employer vs. participants) should benefit?

3. Are there any regulatory guidelines dealing with timeliness of distribution of funds after termination, IRS approval, or liquidation of assets?

Thanks in advance.