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Employee Plans Compliance Unit (EPCU) - Current Project - Nonbank Trustees and Custodians

Background

Nonbank trustees or nonbank custodians (NBT) are described under Treasury Regulations Section 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 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. To view a list of the currently approved nonbank trustees/custodians go to: Nonbank Trustees List as of October 1, 2013.

If You Receive a Letter from the EPCU
Please timely provide the information requested in the letter. Your response can be mailed or faxed to the address/fax number listed in the letter. Failure to respond could result in an earlier investigation of your NBT status.

If You Have Questions
Please contact the individual listed in the letter or feel free to e-mail us and we will be happy to answer any questions you have about the project and how it relates to you. E-mails should include “Nonbank Trustee Project” in the subject line of the message.

Additional Information

 

Page Last Reviewed or Updated: 06-Mar-2014