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Posted

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

Posted

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.

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