Switching from participant directed to pooled account

[Jakyasar]

A theoretical (but coming up) question as I never had to deal with it before.

Client has a straight PS plan, no other provisions.

Initial set up was pooled account. A few years later, they wanted to have a participant directed account (because they heard it was better thru the grapevine).

Thay asked my opinion and knowing this client, I told them it will complicate their lives but I cannot provide any recommendations on switching.

Lo behold, they switched 2 years ago and now they may want to switch to pooled account because too complicated for them to deal with. Hmmm (not saying I told you so).

They want to close up the participant directions and transfer all to pooled account.

One way to do is leave the participant directed account as is and put in all future contributions into a pooled account but they will prefer dealing with a pooled account only.

What issues are they facing, if any? Any BRF issues? Anything else?

Thanks

 

[Bri]

The trustees should move ALL the funds to the pool, or none of them.  For their own 404(c) protection, and because what's less easy than individual accounts?  Having BOTH the individual accounts *and* a pool.  They said it was complicated!