What's the difference between a "common" trust and a "collective" trust?

[Guest rpreston]

anyone know the difference in a "common" vs "collective" trust?

[Ron Snyder]

I believe that the term used by IRS is "Common/Collective Trust". The purpose for the two words is because some banks use one and some use the other, but IRS lumps them together because to the Service they are the same. Of course, banks may have different meanings for "common" and "collective". If you find a bank that uses both terms (and I doubt one exists), you can ask them. Otherwise the term means the pooled "common" or "collective" investment account offered by the bank trustee.

[Harwood]

Go to winston.com [Winston & Strawn]

Search for: OCC

Click on "Compliance Issues for Retirement Plan Trustees"

There is a bit on the difference between Common and Collective