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Pooled Separate Account allowed?


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An auditor friend of mine was reviewing an audit report for an ERISA 403(b) plan. The assets are held by VOYA and Equitable, and are listed on the audited financial statements as Pooled Separate Accounts. His question was that he was of the belief that 403(b) plans cannot invest in PSA's; the investments must be in mutual funds or annuity contracts. Researching this over the weekend led me to believe him.

In reviewing the Equitable report, it appears that each participant has their own unique "contract number". Therefore his and my question is whether the investments with Equitable are appropriate for a 403(b) plan.

Thanks for any replies.

 

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21 hours ago, bzorc said:

... the investments must be in mutual funds or annuity contracts. Researching this over the weekend led me to believe him.

 

I agree unless these are Code Section 403(b)(9) accounts.  Pending legislation, if passed into law, would change the investment restrictions.

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I agree with the comments above.  The "unique contract numbers" are probably individual annuity contracts.  I would say whoever wrote that on the "audited financial statement" was not precise in naming these contracts.

PNJ

Patricia Neal Jensen, JD

Vice President and Nonprofit Practice Leader

|Future Plan, an Ascensus Company

21031 Ventura Blvd., 12th Floor

Woodland Hills, CA 91364

E patricia.jensen@futureplan.com

P 949-325-6727

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