Any other organization authorized to act as trustee for individual retirement accounts under Internal Revenue Code section 408. Shares issued by a registered investment company such as a mutual fund company. Investment and annuity contracts issued by an insurance company. Assets in individual accounts of participants or beneficiaries over which the participants or beneficiaries have the opportunity to exercise control and where statements from a registered financial institution of such assets are furnished at least annually to the participants or beneficiaries. The determination as to the percentage of plan assets that constitute qualifying plan assets is generally made as of the first day of the plan year.
Special rules apply, based on estimates, for the initial plan year.
A summary of form 5500, called the Summary Annual Report, must be provided to each plan participant and beneficiary. A notice stating that participants and beneficiaries should contact the Regional Office of the U.S. Department of Labor's Pension and Welfare Benefits Administration if they are unable to examine or obtain copies of the regulated financial institution statements or evidence of the required bond, if applicable. The bond provides protection to the plan against loss by reason of acts of fraud or dishonesty on the part of the plan administrator, officer or employee. The new regulations are effective for plan years beginning after April 17, 2001. For calendar year plans, the first plan year the regulations will take effect will be 2002.