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That depends on the rules of
your company's plan. Employers who follow the Department of Labor's voluntary guidelines
must allow transfers among investments at least quarterly, and more frequently if the plan
offers a very volatile or high-risk investment (one that could fluctuate greatly over a
short period of time). Beyond the voluntary guidelines, there is no legal requirement for
how often plans must allow transfers.
How often your plan allows transfers has a lot to do with how frequently the plan's
record-keeper values the account (reconciles the various investment gains and losses).
Valuations can be performed annually, semi-annually, quarterly, monthly or even daily
– but you can only transact business as often as the account is valued.
While many plans still value accounts on a quarterly basis, the trend is turning toward
daily valuation. Most large to mid-sized plans are already valued daily.
Check with your human resources or benefits representative regarding the rules for your
plan. |
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