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QTA Needed for Abandoned Plan


Flyboyjohn
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If you really mean a qualified termination administrator as 29 C.F.R. 2578.1(g) defines that term, there usually is no selection because a QTA must already "hold[] assets of the plan that is considered abandoned[.]"

If someone will appoint a fiduciary, limiting a selection by geography might be unnecessary; and someone elsewhere might have experience administering abandoned plans or have other capabilities that make his or her service efficient or effective for the plan's exclusive purpose.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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My understanding was if the current asset custodian (Merrill Lynch in this case) was unwilling to serve as a QTA (which I'm learning is the position of many/most major investment institutions)the assets could be transferred to a different institution (has to be qualified to hold IRAs).

I've learned that Penchecks may have offer QTA services but haven't confirmed yet.

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If you are the TPA trying to help close out the plan, I suggest you call your local DOL regional office and ask for their abandoned plans person. They can also assist with closing a plan outside of their abandoned plans program, without a QTA. Explain the situation and ask for help outside of the program. It may be a pain getting them to agree to help, but they can. I don't know if they have to get the national office involved, but for the one I worked on, the regional office referred me to the national abandoned plans coordinator, who at the end of our discussion, referred me back to the local regional office. Good luck.

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