Can a 403(b) and a 401(k) plan be set up in one trust?

[Guest Rob Morgan]

If a plan sponsor has an old 403(B) plan and a new 401(k) plan, must the 403(B) plan have a seperate trust from the 401(k) plan, or can they have one trust for both plans?

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Rob Morgan

Pension Plan Administrator

[Guest CVCalhoun]

Technically, they have to have separate trusts, because the vehicles in which a 403(B) plan can invest do not include a trust under a 401(a) plan. As a practical matter, though, each trust can own an undivided interest in a common pool of assets. Thus, the only practical impact of having two trusts is that there must be separate accounting for each.

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