Valuation & Distribution Timing

[Dazednconfused]

Hi,

Plan has participant directed accounts for deferrals and pooled for Er contributions. Plan document states distributions when admin. feasible. Valuation is done yearly for pooled Er funds. Is there any issues with doing a quarterly valuation when there are distribution requests (and no valuation for quarters that do not have distributions)?

Thanks!

[Trekker]

On a few plans I've seen that permit this, the participant(s) requesting the distribution must pay for the valuation. It doesn't seem fair to impose this expense on all participants when you're doing it for the benefit of a few.

[cpc0506]

Hi,

Plan has participant directed accounts for deferrals and pooled for Er contributions. Plan document states distributions when admin. feasible. Valuation is done yearly for pooled Er funds. Is there any issues with doing a quarterly valuation when there are distribution requests (and no valuation for quarters that do not have distributions)?

Thanks!

You do need to check the language in the document to see if additional valuations are allowed for the Profit Sharing side of the plan. If the document does not allow, you will need to amend the document to allow additional valuations.