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Chapter 7. Keeping Tabs on Your Account > Punching Out for the Last Time - Pg. 80

Keeping Tabs on Your Account 80 Keep in mind this is typical, not universal. There could be some differences for your plan, so it's worth your peace of mind to talk with the plan administrator to find out what really happens at your company. Here's what generally happens if the record keeper uses the traditional valuation method. Your payment date is usually the valuation date following your termination of employment. The record keeper first updates your accounts through the valuation date to reflect contributions and investment earnings. Then he or she can pay your account. Most likely, it will take one to two months following the valuation date for you to be paid. Most likely, you won't receive interest on your payment after the valuation date. To check your payment, look at the reconciliation for the accounting period ending on the last valuation date. If it looks okay and matches your payment, you're done. In all cases, you will also want to make sure the record keeper has properly calculated your vesting percentage on your employer-paid accounts. The vesting percentage should reflect service through your termination date. However, be aware that there are many different ways to count service. Some plans use simple elapsed time, while others may require a minimum number of hours. Your SPD will tell you how to calculate vesting service. (See Chapter 2 for more on vesting.) The Least You Need to Know · It's a good idea to check up on your accounts periodically. Mistakes do happen, and it's easier to correct them right away instead of waiting. · Understand how the record keeper updates your account balances and know whether the valuations are daily or traditional. This will help you understand how the recordkeeper maintains your accounts. · Keep those statements. Lay them side by side and confirm that opening and closing balances match period to period.