This was modified 12/28 at 6:18 a.m.
The IRS issued Revenue Ruling 2011-1, under which it will allow the combining of 403(b) assets with 401(a) assets in the 81-100 trusts.
1. Only public school/university and church 403(b) plans should be able to use a non-registered common/collective 81-100 trust with unitized interests to combine 401(a)/457(b) and 403(b) assets, but they should first check in with a security lawyer to make sure of it (or get a representation from the vendor). These trusts will need to recognize and pass through shareholder rights to the 403(b) plan participants in ways not available to the non-403(b) plans, which will be a challenge in a unitized arrangement. The IRS, as part of this ruling, appears to be recognizing that a holding a non-regisaterred unit in a 81-100 trust qualifies under 403(b) for the rule that a custodial account only holds registered investment company shares.
It doesn’t look like 403(b) plans of private (non-church) employers will be able to use this non-registered group trust absent an SEC No-Act letter.
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