The first 401k plans were done under a balance forward method of recordkeeping where plans would be valued monthly, quarterly or even annually.  Participants did not have web access.  They could only make investment transfers periodically.  Distributions were made based on an amount from the last valuation and any gain or loss since that valuation, was disregarded.

As technology improved, we have developed a daily valuation service.  Each participant account is updated every day.  Participants have web access to their accounts.  They can make transfers among investments based on the closing price that day.  Distributions are processed based on the value of the account at the time of liquidation.

Daily valuation is the most accurate recordkeeping methodology used today.  If your plan is still running in a balance forward environment, your participants are not getting the service they deserve.  Call us and we can show you how this service can benefit your employees usually at the same cost as a balance forward service.

Web Demonstration – click Account Access | Participant above.  Enter a username of 333-33-3333 and password 33333.  You will have access like a participant would.