Collectibles as Plan Investments

[emmetttrudy]

A lot of threads on whether you can or can't invest in gold coins in a 401k PSP. But, I havent see anything reference doing so in a Defined Benefit Plan? Do the same rules and exceptions apply?

[Guest Sieve]

The rule against holding certain coins, collectibles, etc. in a qualified plan relates to a self-directed plan (IRC Section 408(m)(1)), with an exception from the prohibition for certain gold coins (IRC Section 408(m)(3)(A)(i) & (iv).).

Therefore, a DB plan generally can invest in gold coins (except, perhaps, a one-person plan).

[emmetttrudy]

Is a one-person plan considered a participant-directed plan for these purposes? The regulations aren't specific, but it would seem it is.

[Guest Sieve]

I would think so.