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Commingling Assets of Multiple Solo 401(k) Plans


Molgilny89

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Would there be anything legally preventing a recordkeeper from commingling the assets of multiple Solo 401(k)s into a single trust account to achieve efficiencies for the all the individual plans? I know certain parts of ERISA do not apply to a Solo 401(k) plan, but I'm wondering if any of the sections that do apply would prohibit this practice?

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A multiple employer trust is different than a multiple employer plan - you can have the former without the latter. 

This is different than a master trust, where assets of multiple plans of a single employer or controlled group of employers are contained in a single trust.

I do not think there are any restrictions on solo plans entering into this sort of arrangement.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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Just curious, is this something the recordkeeper wants to do or is this something the Individual Solo K plans are requested? I would think that the custodial agreement would determine if this could be done or not. Also, this sounds like a recordkeeper's nightmare. 

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