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"ERISA account" funded by another plan fiduciary (not the plan sponsor)


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Guest carol lee
Posted

Has anyone out there heard of an "ERISA account" that is funded by an investment trustee for the benefit of a client. We have a company 401(K) and an outside consultant that we hired advised us to press our trustee to fund this kind of account for us to use to pay fees for a plan audit. The Trustee says no because this would be a prohibited transaction without any ERISA exemption. Our consultant says it's done all the time, but we haven't found any information on this being done.

Does anyone have any information on this kind of thing? Should we press for this?

Posted
...for the benefit of a client.

What does this mean?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted

What makes it an "ERISA" account?

Since it was the consultant who made the suggestion and also said that it was done all the time, it should be the consultant providing the references and proff rather than you looking for something that you are not sure what it is.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

Until we hear more, let's call him a "consultant". Let him earn the removal of the quotes.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted

Since these Message Boards are authority (aren't they?), then we get to decide.

:D

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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