Rate of Return Calculation on Lost Earnings (Posted October 15, 2004) Technical Tip 46: The following question and answer are from the DOL/EBSA website: The plan investments are participant directed. How do I calculate the rate of return for purposes of determining lost earnings on delinquent contributions? DOL Response: When calculating the rate of return for participant directed plans, it is necessary the calculate the rate of return for each individual participant account. The same method used for calculating the overall plan rate of return for a plan where the investments are selected by the plan fiduciaries is used for each participant account. For administrative convenience, the applicant may use the highest rate of return of any plan investment option as the rate of return for each individual participant account. For context, see Technical Tip 44, "Calculating Earnings on Delinquent Contributions." View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.