Daily Valuation

[mjf06241972]

What is a daily valuation vs. a annual  or monthly valaution?  for a 401k plan with a recordkeeper, is this considered a daily valuation?  Thank you.

[ratherbereading]

Yes, a 401k  plan that is with Nationwide, John Hancock, etc. is considered a daily valued plan. Participants' accounts are valued daily.

[BG5150]

50 minutes ago, ratherbereading said:

Yes, a 401k  plan that is with Nationwide, John Hancock, etc. is considered a daily valued plan. Participants' accounts are valued daily.

That's only if all the plan assets are with that carrier, or in other daily valued accounts.  We have several plans that have their 401(k)/match funds in daily valued accounts, but the profit sharing account is in a pooled environment.

[ratherbereading]

3 hours ago, BG5150 said:

That's only if all the plan assets are with that carrier, or in other daily valued accounts.  We have several plans that have their 401(k)/match funds in daily valued accounts, but the profit sharing account is in a pooled environment.

I don't have any plans like that.  All mine are with one carrier for all sources.

[Pam Shoup]

In simpliest terms, a plan where the balance is struck for each participant every day that the financial markets are open is a daily valued plan.  Participants usually have access to a website where they can view their balances, make trades. etc.  The service provider will also issue reports at least quarterly for each participant showing their account balances by fund and by source, as well as some sort of summary of activity.  In an annually valued plan, the service provider will strike a balance one time per year per participant and issue an annual statement for each participant. There may be statements produced by an investment provider on a monthly basis, but the full valuation is only done annually.

 

[BG5150]

And check the plan doc.  It'll tell you if the plan should have daily valued accounts.