ERISA fee disclosure
With the new fee disclosure for ERISA plans, can a plan sponsor (self-employed individual with a PSP and no employees), just roll out of her PSP and close (terminate) the plan and move to a SEP IRA. Her plan allows her to do an in service withdrawal of all funds. Once in the SEP than an advisor can advise on those assets, which they are now prohibited from doing. I’m hope I’m not asking something out of your league
Permalink Submitted by Denise Appleby on Tue, 2012-07-03 13:47
[quote=”[email protected]“]With the new fee disclosure for ERISA plans, can a plan sponsor (self-employed individual with a PSP and no employees), just roll out of her PSP and close (terminate) the plan and move to a SEP IRA. Her plan allows her to do an in service withdrawal of all funds. Once in the SEP than an advisor can advise on those assets, which they are now prohibited from doing. I’m hope I’m not asking something out of your league[/quote]
The new fee disclosure requirement under § 408(b)(2) does not apply to a profit sharing plan that covers only the business owner. As such, they fall into the same category as SEP IRAs for that purpose [ that is, the new fee disclosure requirement under § 408(b)(2) ]