brokerage account only for owner?

[gregburst]

I'm looking at a potential 401k takeover, but I'm not sure I want it. The employees are all invested in a group annuity contract with insurance company X. But the owner uses a brokerage account to access more investment choices for himself. I know in general the employees must have the same investment choices as the owner. And I know the brokerage company can have a minimum threshhold to be able to use their product. But this owner has put forth a higher threshhold to keep the employees from using this option. I'm pretty sure that's not allowed. Can someone point me to the right code section to research these rules? Or which chapter in the ERISA Outline Book? Thanks.

[ESOP Guy]

Not my areas of expertise but isn't this a simple as they client would have to show that this benefit/rights/feature (BRF) is non-discriminatory.

It seems to me if an IRS agent showed and saw how this plan is working he would ask for a BRF test then cross his arms and wait. Failing to produce the test would result in him saying this plan is operating in a discriminatory manner.

So the short of it is I don't think you will find rules about brokerage accounts that say if you can or can't do this because this is straight forward BRF question.

[John Feldt ERPA CPC QPA]

Treasury Regulations Sections 1.401(a)(4)-1(b)(3) which refers you to 1.401(a)(4). Be sure to look at 1.401(a)(4)-4(e)(3)(iii)(C ).