Is it discriminatory in a self-directed plan to offer an investment wi

[Guest Tara Curran]

Is it discriminatory if a plan sponsor offers an investment option that has a fairly large minimum investment amount and the only person who will be able to invest in this investment option is the owner? The accounts will be self-directed and the other employees will have the option to invest in this fund, but they will not have the required amount to invest.

[david rigby]

Some earlier discussion.

http://www.benefitslink.com/boards/index.p...=ST&f=20&t=4558

http://www.benefitslink.com/boards/index.p...=ST&f=20&t=8869

[Guest Jeff V]

I might be missing something in your question...

If the minimum investment amount is imposed by the broker, can't you negotiate the minimum down, and consolidate allocations so that a group of participants who allocate funds meets the minimum?

jeff.vonreichenbach@marriott.com

[actuarysmith]

What is the required minimum investment? By your description I would guess that it is thousands.

This would very likely result in a Benefits, Rights, and Features discrimination issue. See 1.401(a)(4)-4© Effective availability.