A 401(k) plan must have a trustee appointed for plan oversight and administration. When needed, the role can be reassigned, however, documentation of the change must be provided, including the appropriate board approval that complies with applicable state regulations and your company’s bylaws. Guideline has provided a sample template, known as the “Trustee Change Packet,” for your use.
Here are answers to common questions regarding selecting a new trustee and how to submit the Trustee Change Packet.
Selecting a new trustee
What are the responsibilities of a trustee?
The trustee is generally responsible for managing and controlling plan assets, and overseeing administrative functions of the plan for the benefit of the 401(k) participants.
Additionally, the trustee serves as a plan fiduciary.
Who can be a trustee?
Because a trustee has significant responsibilities within a plan, there are some requirements for who should hold this role. Additionally, a trustee has personal liability in their role, so it is important they have full knowledge of what’s involved.
Generally, a trustee is someone who has a significant role at the company. Additionally, the trustee must be based in the US to be eligible. You can learn more about trustee requirements here.
Can I appoint more than one trustee?
At this time, Guideline is unable to support more than one trustee. However, there are several other collaborator roles that can be assigned to assist with plan administration.
Can the trustee be a foreign, non-US resident?
Foreign, non-US based trustees are not allowed for 401(k) plans and would cause the plan to become disqualified.
Can I appoint a corporate trustee?
At this time, Guideline is unable to support a corporate or directed trustee. An individual must be named for this role.
Submitting the Trustee Change Packet
Where can I find the Trustee Change Packet?
The Trustee Change Packet can be found within the Resource Library under Forms & Templates in trustee and primary benefit administrator dashboards. The name of the document is “Trustee Change Packet.”
Can I make updates to the Trustee Change Packet?
The “Certificate of Secretary” within the Trustee Change Packet is a sample template provided by Guideline. Therefore, you may make edits so it more closely aligns with your company’s structure.
Please keep in mind that the sample provisions provided may not be applicable to your company’s unique situation. You are advised to consult your attorney to ensure you have submitted a resolution that complies with applicable regulations and the company’s bylaws.
However, the “TERMS AND CONDITIONS FOR USE OF BENEFIT TRUST COMPANY BTPASSPORT” is a contract between the plan sponsor and the custodian who holds the plan’s funds. It is a legal document meant to meet law and regulatory requirements, and, therefore, cannot be changed.
What happens if the plan needs the trustee to take action, but the trustee has retired and is not in contact?
The appointment of a new trustee must be made by Board Resolution and completion of a Trustee Change Packet. Please keep in mind that the sample provisions in the packet we have provided may not be applicable to your company’s unique situation, and you are advised to consult your attorney to ensure you have submitted a resolution that complies with applicable regulations and company’s bylaws.
Can I sign the Trustee Change Packet using Docusign?
Guideline may be able to accept completed forms by Docusign for extenuating circumstances. Please contact our Sponsor Support team to discuss your situation.
Why is the Trustee Change Packet not in my Forms & Templates folder?
The Trustee Change Packet will only appear in administrator dashboards for the current trustee or primary benefit administrator roles. You can find out which administrator role you hold here.
If you are not the primary benefit administrator or trustee, please consult them, as this document is only available in their dashboards. If you cannot access the document because the current primary benefit administrator or trustee needs to be updated, please contact us to discuss your unique situation.
My company does not have a Board of Directors. Who can sign the “Certificate of Secretary”?
Generally, any individual authorized by the employer to make decisions regarding the plan on its behalf can sign the certificate.
The “Certificate of Secretary” is a sample template provided by Guideline and may need to be altered to fit your organization’s structure. You are advised to consult your attorney to ensure you have submitted a resolution that complies with applicable regulations and your company’s bylaws.
Who signs the “Acceptance of Trustee” form?
The new trustee must sign the Acceptance of Trustee form to accept their new appointment. The former trustee is not required to authorize this change.
Who can sign as a witness to the “Acceptance of Trustee”?
The witness can be any party who has witnessed the new trustee’s signature. Please note that the sample provisions in this document may not be applicable to your unique situation. You are, therefore, advised to consult your attorney to ensure you have submitted a resolution that complies with applicable regulations and your company’s bylaws.
Do any signatures need to be notarized?
Signatures do not need to be notarized.
Should the new or former trustee sign the “Approval by Authorized Signer Required” signature page?
The new trustee should sign the Approval by Authorized Signer Required signature page.
What should I do once I complete the Trustee Change Packet?
You can upload a copy of the packet to the Shared Files section within the Resource Library of your Guideline administrator dashboard.
Please kindly follow up with an email to clients@guideline.com, alerting our team of the upload, and a representative will action the request. To assist with processing, please include the plan’s Account ID for security verification.
After requesting the trustee change
How long will it take for the update to take effect?
Average turnaround time for a trustee update is 2-3 business days, but may vary depending on the accurate completion of a Trustee Change Packet.
How is a trustee provided access to an administrator dashboard?
After Guideline has processed your request, the new trustee will be sent an email to the designated address outlined in the Trustee Change Packet to notify them of their appointment and how to create their administrator account.
If you are a new trustee who has not yet received an invitation, please check your spam and junk folders. If you have exhausted those options, please reach out to clients@guideine.com for additional support.
Which email address will be associated with the new trustee administrator account?
The email address provided on the signature page (“Approval by Authorized Signer Required”) of the TERMS AND CONDITIONS FOR USE OF BENEFIT TRUST COMPANY BTPASSPORT document in the submitted trustee Change Packet will be used.
How to get further assistance
For further assistance, please feel free to contact Sponsor Support. Please keep in mind that our representatives cannot provide guidance on your company’s unique situation, and you are instead advised to consult your attorney to ensure you have submitted a resolution that complies with applicable regulations and company’s bylaws.