Can someone explain why a plan might be nontrusteed?

[Guest jhilliard]

I have been in the business a short time so forgive me.

While reviewing a plan document, I noticed the plan is non-trusteed. What determines whether a plan can operate as non-trusteed vs. needing a trustee?

This particular plan is a profit sharing plan with only post-tax employee contributions.

Thanks

[E as in ERISA]

Are the assets held with an insurance company?

[Guest jhilliard]

Yes the plan is with an insurance provider.

[E as in ERISA]

There are exceptions to ERISA Section 403's trust requirement for certain assets in insurance contracts or held with an insurance company. See ERISA 403(b).

[david rigby]

ERISA section 403 is 29 CFR section 1103.

http://www4.law.cornell.edu/uscode/29/1103.html

(No guarantee that this site is up to date.)

[joel]

403(b) is for non-profits and public schools. It cannot be used for a profit-sharing plan.

[E as in ERISA]

We're talking about ERISA 403(b), not IRC 403(b).