Black Out

[PFranckowiak]

Plan is changing Vendors.

They have not yet issued Black out Notice

Want to start sending new contributions to new vendor 6/1.

Rest of Assets to transfer 7/1

Since the Assets will now be at two vendors that makes it almost impossible to do loans or distributions from the plans.

Do they need to wait until 30 days after the black out notice is issued to start the contributions to the new vendor?

Thanks

Pat

[Kevin C]

Why would having assets at two places make it almost impossible to process loans and distributions before the blackout starts? The blackout should start a couple of days before 7/1.

Anyone eligible for a distribution before the blackout starts is unlikely to have funds at both places. But, if they do, just process the distribution both places until the blackout starts.

Loans may be more difficult, but is seems unlikely that anyone would accumulate enough assets at the new vendor in the month before the blackout to make much difference in their loan amount. If you are concerned that limiting loans to the existing vendor for that month creates a blackout, you could get information from both places and determine the maximum amount available for the loan so that participants are not affected by the change until the blackout starts.

[Bird]

Why would having assets at two places make it almost impossible to process loans and distributions before the blackout starts? The blackout should start a couple of days before 7/1.

Sometimes the old vendor will refuse to process distributions or loans as soon as they receive a notice of pending asset transfer. It's effectively a blackout before the intended blackout date. I don't have an answer to that problem, except to do the best you can in good faith.

As far as sending contributions to the new vendor, no I don't think they need to wait 30 days from the blackout notice.

[Bill Presson]

Sometimes the old vendor will refuse to process distributions or loans as soon as they receive a notice of pending asset transfer. It's effectively a blackout before the intended blackout date.

This would seem to be legally problematic to me.