For example, a plan amendment adopted on July 1, 1997, would result in a requirement that a SMM be furnished to participants and beneficiaries and filed with the department within 210 days after the end of the plan year. Under the new requirement, the SMM need not be filed with the department.
Good news: the return on your 401k or 403b plan is probably even better than your defined contribution plan provider tells you it is.How can this be?
It's a matter of reporting and measuring.
The standard practice in the mutual fund industry is to show the performance of mutual funds as lump sum investments--- as though you made one investment, once, and watched it grow. In fact, defined contribution plans are based on systematic investments --- regular contributions over a long period of time.
QUESTION 47: In Q&A 46, we dealt with the following question from a reader: "A plan sponsor maintains a 401(k) plan that permits hardship withdrawals. In making the hardship withdrawals, the plan administrator included post-1988 earnings in the amounts distributed (contrary to the provisions of the plan). Is APRSC available to correct the defect? What type of correction would be required?" The disqualifying defect in this situation is the distribution as part of a hardship withdrawal of post-1988 earnings on the participant deferrals in violation of the terms of the plan. In the last Q&A, we dealt with whether this defect could be corrected under the Administrative Policy Regarding Self-Correction (APRSC). Here we address the form of correction.