Master Trust?

[Richard Anderson]

We have several employers that have both MP and PS plans that have the assets of both plans invested in one account. I have heard a few people say that comingling the assets of more than one plan of the same employer creates a Master Trust. I'm not sure that it does. Does anyone have any thoughts on this? Also if a MP and PS plan have all assets of both plans comingled, should there be only one trust EIN that both plans use, or should there be seperate trust EINs for each plan.

[pmacduff]

You'll find a thread started by TRA-C-C on 07/27/2001 (last post was 08/11/2001) that deals with this very subject. It's under "Retirement Plans in General".

[Richard Anderson]

Thanks pmacduff,

But that tread didn't seem to answer the questions that I have, so I'm posting here, hoping for more responses than TRA-C-C got.

[Guest AFRICA6796]

Since what we have here is a paired plan, thne one EIN can be used. This would be true even if the assets were held in seperate accounts

I will check on the Master trust issue

[Kristina]

A master trust is only a master trust for 5500 purposes if the assets are held by a bank.

So, if the assets are comingled thru a brokerage house, you do not have a master trust.

Also, each plan must file a 5500. Comingled assets and paired plans.