Guest kh1 Posted April 8, 2011 Posted April 8, 2011 Doctor group 401(k) allows for self-directed accounts. 1 doc want to invest a portion of his account in a partnership, of which he is a less than 5% partner. He will be performing "services" in the partnership, and will help to generate income there. Is he allowed to invest in this partnership in his segregated account? Also, what about unrelated business tax, will that come into play?
Bill Presson Posted April 8, 2011 Posted April 8, 2011 Doctor group 401(k) allows for self-directed accounts. 1 doc want to invest a portion of his account in a partnership, of which he is a less than 5% partner. He will be performing "services" in the partnership, and will help to generate income there. Is he allowed to invest in this partnership in his segregated account? Also, what about unrelated business tax, will that come into play? I don't have a specific cite for you, but I believe that it is. We had a very similar situation and the ERISA atty on the plan told the doctor that he could invest his personal money or plan money, but not both because it would be a PT. The doctor believed him and I believed him so neither of us asked for documentation. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
DMcGovern Posted April 8, 2011 Posted April 8, 2011 participant directed accounts are not exempted in any way from the PT rules - DOL Reg 2550.404c-1(e)(3) Is the doc an owner?
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