Nonbank Trustees and Custodians
Annually, the Employee Plans Compliance Unit (EPCU) contacts approved nonbank trustees and custodians to remind them of the requirement to notify the IRS of any changes that affect the continuing accuracy of any representation made in their application, whether the change occurred before or after an applicant received a notice of approval. Anytime a change has been made, you should submit a notification.
Use fax or mail to submit your notification in writing.
Fax: (202) 317-8808, Attention: SE:T:EP:RA:T1
Internal Revenue Service
1111 Constitution Ave., N.W., NCA
Washington, DC 20224
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.
To see a list of approved nonbank trustees and custodians
To view a list of the currently approved nonbank trustees/custodians go to: List of nonbank trustees and custodians and recent updates
If you receive a letter from the EPCU
Please review your application used to receive the notice of approval to ensure all representations in the application are accurate. You must notify the IRS in writing of any change in representation.
If you have questions
Please contact the individual listed in the letter (a telephone number is provided for your convenience). We regret that we cannot answer technical questions unrelated to your nonbank trustee/custodian application.
- Published guidance:
- Treasury Regulations Section §1.408-2(e)
- Revenue Procedure 2016-4, Section 3.09
- Revenue Procedure 2016-8, Section 6.01(7) (user fee)
- Internal Revenue Manual – Nonbank Trustee Investigation Procedures
- Application procedures for prospective nonbank trustees and custodians
- List of nonbank trustees and custodians and recent updates