Force out participants to IRA institution owned by sponsor

[C. B. Zeller]

Plan sponsor has an ownership interest in an IRA provider. Can they force out (terminated <$5k) participants into IRAs with that provider, or would that be a PT?

I remember reading about a PTE that would allow banks to force out participants in their plans into IRAs held by the bank, but my search skills are failing me at the moment and I can't find it again. If I'm remembering correctly it would seem to be relevant guidance.

[Peter Gulia]

The Labor department's webpages includes some that sort the class, expro, and individual exemptions a few different ways, including by topic.

https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/exemptions

On a page about individual exemptions, there are many under the topic heading "Receipt of Fees or Benefits by Parties in Interest".

https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/exemptions/granted

 

[C. B. Zeller]

Thanks for the reading material - I will see if I can find something that applies.