Incorrect Default Investment

[Guest Iwonder]

The Plan Administrator elected a default investment. Assets were incorrectly put into a different "default" investment. The incorrect default investment meets the requirements for a "qualified default investment" but, of course, is not the one that was identified to participants. The incorrect "default" investment has performed better over time.

Any suggestions as to how to remedy this error? Thank you,

[J Simmons]

I would immediately move the assets into the 'correct' default investment, and if the contributions would have been worth more at the time if they had gone into the 'correct' default investments initially, I would make a corrective contribution into the correct default investment in their plan accounts, to make those individuals whole.