Power of Attorney
I’ve been receiving a number of inquires /questions regarding POA’s. The questions (asked in a # of different ways) boils down the this:
How does a POA work in a 401(k) environment?
Is POA language included in the plan document? Does a plan administrator need to approve a POA?
What differences (if any) does a POA play with an ERISA covered plan vs. IRA
Thank you
Permalink Submitted by Alan - IRA critic on Thu, 2018-11-29 23:00
Yes, the plan administrator or IRA custodian in the case of an IRA must approve the POA, and sometimes they will require their own form instead of accepting an attorney drafted general POA. These things often turn out to be a hassle and like other POAs these firms might also be looking for current documentation that the Principal is still living, since POAs are void at the Principal’s death.