no trust agreement

[Guest jigpsu]

I have an employer who switched from using an insurance company as their trustee to an individual sometime in 2005. They did not execute a trust agreement. I know they are required to do so. Is the delay a violation of the trust requirements? Can the trust agreement be retroactively adopted? Should I use the VCP? Any help would be appreciated. Thanks.

[QDROphile]

What happened to the trust agreement in place before replacement of the former trustee? Removal of a trustee and appointment of a new trustee does not evaporate the trust instrument. The document may need amendment to reflect the change.

Or did you really mean that the former arrangement was an annuity contract?

[Guest jigpsu]

The former agreement was an annuity contract that did not need a trust. I should have clarified that. I know I'll have to amend the the plan a bit, but I'm worried about the current lack of a trust agreement.

[david rigby]

...I'm worried about the current lack of a trust agreement.

That seems appropriate. Know any ERISA attorneys?

[Locust]

If there are assets other than insurance contracts, you'll need a trust. ERISA 403(b)

[Guest FLMaster]

Read Hill York v. Commssioner. The question is whether you have an "oral trust' under state law or can the courts imply a trust based upon the writings of the plan. Also see Rev. Rul. 81-114. Hope this is helpful.