Form 5500SF

[Kevin01]

Most of our defined contribution plans have Total Participant Directed accounts. For Plans where participants fail to make an Investment election, we place their (the Participant's) Investment in a Money Market. We describe this as the default investment option. I'm curious as to whether we should mark off code 2T on the 5500 SF, Section 9a? I wasn't sure what others are doing with similar default options...leaving this blank because this isn't a QDIA or if they're adding 2T to this section? Any guidance would be appreciated!

[Cathy from Chicago]

Our plans mainly are also self-directed but each plan has a QDIA so I've been checking off both totally participant directed as well as the 2T box. So far we haven't had any filing rejected but have no clue on the DOL timeline quickness for rejection.

Most of our defined contribution plans have Total Participant Directed accounts. For Plans where participants fail to make an Investment election, we place their (the Participant's) Investment in a Money Market. We describe this as the default investment option. I'm curious as to whether we should mark off code 2T on the 5500 SF, Section 9a? I wasn't sure what others are doing with similar default options...leaving this blank because this isn't a QDIA or if they're adding 2T to this section? Any guidance would be appreciated!

[Bird]

It's ok to do/have both but a default investment is not necessarily a Qualified Default Investment.

[BeanCounterBlues]

Bird's comment is seconded by a noted industry 5500 expert (not me, someone I took a seminar from) - if there's a default investment fund, that code is supposed to be used. It is not a code to indicate a QDIA.

[Kevin01]

Thank you for your posts! This really helped.