Trustee

[Guest michaels4811]

Company has a money purchase plan. They received several favorable determination letters on an individually designed plan. There is no mention of a trustee in the plan and when we went to restate (placing it on a volume submitter) and inquired as to the trustee, the company said they were told by their attorney that they didn't need a trustee. Is there ever a time when you can avoid listing a named trustee in a money purchase plan? I've never heard of this and my suggestion was to assign a trustee as soon as possible yesterday.

[Bill Presson]

I've heard of it if the assets are all held by an insurance company. Is that the current situation?

[Guest michaels4811]

Yes - I believe they are held by Prudential. But, assets are now invested in various mutual funds and insurance contracts. Prudential was called inquiring as to whether they were trustee and they couldn't answer the question (maybe wrong person on phone), but they said they could be if they weren't already. Needs a trustee, right?

[mbozek]

Yes - I believe they are held by Prudential. But, assets are now invested in various mutual funds and insurance contracts. Prudential was called inquiring as to whether they were trustee and they couldn't answer the question (maybe wrong person on phone), but they said they could be if they weren't already. Needs a trustee, right?

If the funding vechilce for the plan is an annuity contract issued by an insurance company there will be no trustee who holds title to the assets because the assets are not held in a trust. However the plan will still have fiduciaries who make decisions on investments and plan administration.