For disclosures, do Individual annuities = brokerage accounts?

[Jim Chad]

For 404(a) and 408(b)(2) disclosures, do Individual annuities = brokerage accounts? How about an individual account at a mutual fund?

I have a plan with 4 participants where each person went where they wanted. 2 have a mutual fund family and 2 have individual variable annuities.

[Guest ebgroup]

For 404(a) and 408(b)(2) disclosures, do Individual annuities = brokerage accounts? How about an individual account at a mutual fund?

I have a plan with 4 participants where each person went where they wanted. 2 have a mutual fund family and 2 have individual variable annuities.

I believe anything that is not designated or chosen by the plan sponsor counts, because the regulations refer to ""brokerage windows," self-directed brokerage accounts" or similar plan arrangements that enable participants and beneficiaries to select investments beyond those designated by the plan." If the participant's choice was not limited, I would not treat them as designated investments.

[Bird]

I believe anything that is not designated or chosen by the plan sponsor counts, because the regulations refer to ""brokerage windows," self-directed brokerage accounts" or similar plan arrangements that enable participants and beneficiaries to select investments beyond those designated by the plan." If the participant's choice was not limited, I would not treat them as designated investments.

I agree. There are some rules about disclosing fees on such accounts in advance and after-the-fact, and that might be technically problematic, but not enough to concern me on a practical level.