Segregated 401(k) Accounts

[Saiai]

This is the first time I’ve encountered a 401(k) plan with “segregated accounts” whereby individuals can elect to have their assets placed into a separate trust that (i) is managed by the plan trustee's advisors or (ii) are managed by the participant's appointed investment advisor. Any particular issues the plan sponsor should be aware of when dealing with these types of accounts?

[ETA Consulting LLC]

They are still plan assets under the plan's trust. The participant's involvement is, generally, limited to investment direction; they must still get approval from the plan's trustee for distributions.

Good Luck!