401(a)(31)(B) and non-Code qualified plans

[Guest Glen]

If a plan is not qualified under any section of the Code, but is covered under Title I of ERISA, then the plan would not appear to be subject to 401(a)(31)(B). However, since DOL issued the corresponding regs under the fiduciary responsibility rules it would seem that these would apply, but not as part of a requirement, only as a safe harbor guideline. Accordingly, should this plan not comply with the regs, while still protecting and guaranteeing benefits, it would not automatically mean they have run afoul of any requirements. Any thoughts?

[david rigby]

Perhaps I'm missing something, but if the plan is not qualified, then the concept of "rollover" has no meaning.

[Guest Glen]

That is exactly the point, I can't see that the Code requirements apply. This leaves you only with a nice set of rules for the clean and wholesome fiduciary to live by, if they wish. The only reason I'm posing this as a question is because I seem to be in the minority among the people dealing with this case.

[david rigby]

If you attempt to "roll over" from a non-qualified plan to a qualified plan or an IRA, that transaction seems to be a non-starter. Go no further.

[Alf]

First, this is the wrong board for nq plan qs. Second, if you aren't 401(a), but subject to Title I of ERISA, you don't have to worry about these rules.

[GBurns]

What shouldn't he worry about ? The IRS rules, the DoL rules or Both?

[Alf]

The new DOL rules for mandatory cash-out/IRAs.