austin3515 Posted January 30, 2012 Posted January 30, 2012 Let's say a client sends their fee disclosures to everyone with account balances (despite our advice that everyone needs to receive it). Do they blow their 404© for the entire plan? Sungard mentioend that one of the implications of not complying was a loss of 404c protection. I'm just curious if not sending it to this one group would blow 404c, if they otherwise complied. Austin Powers, CPA, QPA, ERPA
jpod Posted January 30, 2012 Posted January 30, 2012 Non-compliance with 404a-5 results in a breach of fiduciary duty (but I'm not sure there are any damages if there is such a breach with respect to a participant who has no balance). 404c provides transactional protection, and on a participant-by-participant basis, so I don't see why one might need 404c protection for someone with no balance.
austin3515 Posted January 30, 2012 Author Posted January 30, 2012 Do yoiu have a site regarding 404c applying on a participant by participant basis? That's the crux of my question. Austin Powers, CPA, QPA, ERPA
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