Kate Belyayeva

Would it be a problem under any federal law (e.g., IRC 401(a)(2) Exclusive Benefit Rule, IRC 503 prohibited transaction rules…) for a qualified 401(a) non-electing church plan to add a provision to its plan (and 501(a) trust agreement) to provide for indemnification of the board members and employees who administer the plan against liability (except in the cases of willful or wanton conduct, gross negligence, and gross malfeasance), with such indemnification to be payable from its plan assets. Assume that there are no state law issues to consider (focus is on federal law). Of course, since it’s a non-electing church plan, it is exempt from ERISA. Any specific or general thoughts would be greatly appreciated. Thanks!

Would it be a problem under any federal law (e.g., IRC 401(a)(2) Exclusive Benefit Rule, IRC 503 prohibited transaction rules…) for a qualified 401(a) governmental plan to add a provision to its plan (and 501(a) trust agreement) to provide for indemnification of the board members and employees who administer the plan against liability (except in the cases of willful or wanton conduct, gross negligence, and gross malfeasance), with such indemnification to be payable from its plan assets. Assume that there are no state law issues to consider (focus is on federal law). Of course, since it’s a governmental plan, it is exempt from ERISA. Any specific or general thoughts would be greatly appreciated. Thanks!