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Full Version: Can someone explain why a plan might be nontrusteed?
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jhilliard
I have been in the business a short time so forgive me.

While reviewing a plan document, I noticed the plan is non-trusteed. What determines whether a plan can operate as non-trusteed vs. needing a trustee?

This particular plan is a profit sharing plan with only post-tax employee contributions.

Thanks
Katherine
Are the assets held with an insurance company?
jhilliard
Yes the plan is with an insurance provider.
Katherine
There are exceptions to ERISA Section 403's trust requirement for certain assets in insurance contracts or held with an insurance company. See ERISA 403(b).
pax
ERISA section 403 is 29 CFR section 1103.
http://www4.law.cornell.edu/uscode/29/1103.html

(No guarantee that this site is up to date.)
Joel L. Frank
403(b) is for non-profits and public schools. It cannot be used for a profit-sharing plan.
Katherine
We're talking about ERISA 403(b), not IRC 403(b).
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