Reportable Transaction

[Guest Rutager]

Large plan filer where all assets are participant directed. The money is held at an insurance company. The insurance company closed 13 funds during the year. The plan notified the participants before moving the money of the changes and that their funds would be mapped to new funds if the participant made no formal election at the time of closure. Should these closures / fund movements be treated as a reportable transacation for purposes of the 5500?

[JanetM]

Balances attributable to participant directed assets are not included in the 5% transaction report. The participants in essence elected the option of letting the Insuarance company do the transaction rather than take the time to initiate it themselves. By not doing something differecnt they elected to move to funds indicated by the mapping notice.