Individual Contract and investment election

[Guest Serena]

What do you do if you have unallocated funds to deposit due to nonelective contributions and you do not have an investment election form on file because the pariticpant chose not to defer? Now the participant cannot be located and the plan is going to terminate. Can a default fund be used even though it is an individually directed and controlled contract?

Normally you need participant consent.

Any one had a similar circumstance?

[TLGeer]

What do you do if you have unallocated funds to deposit due to nonelective contributions and you do not have an investment election form on file because the pariticpant chose not to defer? Now the participant cannot be located and the plan is going to terminate. Can a default fund be used even though it is an individually directed and controlled contract?

Normally you need participant consent.

Any one had a similar circumstance?

1-What does the contract say?

2-What does the plan doc say?

Tom Geer

[mbozek]

What do you do if you have unallocated funds to deposit due to nonelective contributions and you do not have an investment election form on file because the pariticpant chose not to defer? Now the participant cannot be located and the plan is going to terminate. Can a default fund be used even though it is an individually directed and controlled contract?

Normally you need participant consent.

Any one had a similar circumstance?

If the participant cannot be located and the plan is termiating why not send to contributions to the state abandoned property fund custodian? Another option is to roll it to an IRA if you can find a custodian who will open an account for a missing participant. Default option is to mail it to the last known address of the participant and then wait for the check to be returned and cancelled. Finally you could also try to find the participant through the IRS or a private locater service.