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Non Discretionary Corporate Trustee


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A client we provide document services to has a non-discretionary Trustee (TD Ameritrade). TD Ameritrade refuses to sign the Volume Submitter document as Trustee of the Plan. How does this affect the Plan Sponsor's reliance on the Opinion Letter for the VS document? Could they use an external Trust Agreement? If so, would they need to submit this with the application for a DL, and they could leave the Trustee signature blank on the actual document?

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We had a similar issue with Great-West. As I understand it, if they use a separate trust agreement that is not approved by the IRS for use with your adoption agreement, the client cannot rely on your Opinion Letter for the adoption agreement. If they use the separate trust agreement that your document provider uses, they should be fine.

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If it's only a matter of their not signing the Plan (but they do sign the "approved" trust) then it's a non-issue. We've seen several trustees who have no problems with the trust provisions, but do not want to have any responsibility relative to the plan terms (which they think if they sign to they are acknowleging/warrantying/guaranteeing the provsiions of).

We've also been successful in getting some (like Great West) to actually use the FT Williams "pre-approved" trust with very minor modification, alleviating the problem K2 points out.

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