switching from self directed to pooled assets

[betheeg]

In a 401(k) plan that is currently participant directed, can you switch to a pooled account that would be trustee directed? All of the participants leave their money in money market and have expressed interest in having the employer handle the investing for them. Would this take anything more than an amendment?

Thanks for the help in advance.

[jpod]

If it's a prototype, an amendment may be necessary; you need to check the adoption agreement. Most individualized plan documents don't specify, but leave it open, in which case all you would need to do is give notice (presumably in advance).

[betheeg]

It is a volume submitter (Relius).

[Jim Chad]

I had 2 plans make this change this year. Both of the Plan docs gave participants the right to direct investments. So, I had to amend the doc and I used the Summary of Material modifications as the notice that was handed out to the employees.

[betheeg]

Good to know Jim. I think that's the way I will handle it as well. Thank you!