Investment options

[Guest bba]

We deal with single employer/ single participant plans for small businesses. We are looking for a reference/book that outlines what investments other than stock and mutual funds are available to them. I.e. can they hold rentals in their plan, or can they build a building for resale with plan funds etc.

[GBurns]

I wonder what you mean by "We deal with single employer/ single participant plans for small businesses".

In any case if you "deal" in any way with any thing, Shouldn't you already know about that thing?

Doesn't your plan document state what can be held?

[Guest bba]

Let me clarify, we are an accounting firm, some of our client's have pension plans, in which they are the only participants, because they have no other employers. We use regional prototype plan documents. We get questions from client's regarding what are acceptable investments for the plan assets. For example I know it's OK to invest in land and hold as a plan asset, but on the other hand I know buying a plot of land, subdividing and reselling with plan assets would not work, as it's no longer an "investment" but more like a trade or business. Our question is where is the line drawn? Where do we look for guidance in this area?