men and women sitting around conference table in meeting (Photo: Shutterstock)

Business owners must tackle many important decisions whenestablishing a 401(k) plan for their employees. Many of thesechoices are unfamiliar, and perhaps the most pivotal is also theleast understood — whether to be the plan's trustee themselves(self-trusteed) or designate a corporate trustee, which could bedirected or discretionary.

Since 401(k) plans originated inthe Internal Revenue Code (IRC) in 1978, the vast majority havebeen self-trusteed plans, in which the plan owner or an internalcommittee assumes the role. Business owners were often told thatthe self-trusteed model is cheaper, easier and entails littlerisk.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.