401(k) and Fund Pricing Error

[Guest shelterps]

One of the funds in the 401(k) fund line-up had a small pricing error. The total amount of the error is $1700. Several hundred participants in the plan invest in the fund, so the correction amount is going to be less than $10 per participant. Could the entire amount of the correction be placed in forfeitures instead of actually calculating the amount due to each affected participant? For this plan, forfeitures are used to offset employer contributions. Thanks.

[WDIK]

Are you talking about current participants, former participants who still have account balances, former participants who have been paid out, or some combination of the three?

[Bill Presson]

One of the funds in the 401(k) fund line-up had a small pricing error. The total amount of the error is $1700. Several hundred participants in the plan invest in the fund, so the correction amount is going to be less than $10 per participant. Could the entire amount of the correction be placed in forfeitures instead of actually calculating the amount due to each affected participant? For this plan, forfeitures are used to offset employer contributions. Thanks.

Unfortunately pricing errors do happen. Can you not load the new price in the system and that will correct the amounts?