Custodian of a Retirement Plan Law and Legal Definition
Custodian of a retirement plan is generally a firm. It's a financial firm that takes care of the retirement fund by ensuring that the rules created by the Internal Revenue Service (as well as the creditor's interests) are adhered to. They also take care of any documentation/tax reporting that may have to be done as a result of the plan. Retirement Plans sponsored by employers (like 401(k)s, 403(b)s, SIMPLE IRAs and SEP IRAs) and personal accounts traditional IRAs and Roth IRAs) require a custodian.