Approved Nonbank Trustees and Custodians
The IRS maintains a list of entities approved, under Treas. Reg. Section 1.408-2(e), to serve as nonbank trustees or custodians. This list will now also be available on this web site. The IRS will also post periodic updates to the list on this web site. The IRS will frequently update this list as other nonbank trustees or custodians are added or removed. Entities will be removed from the list after their withdrawal or revocation has become final.
An approved nonbank trustee or custodian is required to notify the IRS of any change in entity name, address or any other change that may affect the entity’s status as an approved nonbank trustee or custodian.
An approved nonbank trustee or custodian that has incorrectly been excluded from the list of approved nonbank trustees or custodians, is on the list of approved nonbank trustees and custodians and is no longer acting as a nonbank trustee or custodian, or that needs to request any corrections should contact the IRS, in writing, as soon as possible by fax to the attention of SE:T:EP:RA:T1 at (202) 283-9598, or mail to the following address:
Internal Revenue Service
1111 Constitution Ave., N.W., PE
Washington, DC 20224
Nonbank trustees or nonbank custodians (NBT) are described under Treasury Regulation §1.408-2(e). An entity that is not a bank (or an insurance company in the case of Archer Medical Savings Accounts and health savings accounts) can request to be a nonbank trustee/custodian by applying in writing and demonstrating that certain requirements will be met in order to handle any of the following fiduciary accounts:
- Archer Medical Savings Account (MSA)
- Health Savings Account
- Qualified Retirement Plan Custodial Account
- 403(b)(7) Custodial Account
- Individual Retirement Arrangement (IRA)
- Roth IRA
- Deferred Compensation Plan of State & Local Government and Tax Exempt Organizations Custodial Accounts
- Coverdell Education Savings Account
If the requirements described in Treasury Regulations Sections 1.408-2(e)(2) - (e)(5)(viii)(F) are met, the NBT applicant will receive a written notice of approval. Annually, the Employee Plans Compliance Unit (EPCU) contacts the approved NBTs for an affirmation that the organization continues to serve as a nonbank trustee/custodian. The responses are used in the preparation of a Nonbank Trustee/Custodian List that will be published in the Cumulative Bulletin each February.
- Published guidance:
- Application procedures for nonbank trustees and custodians