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Resolving the Passive Custodian Paradox

 Tue, 11/13/2018 from 1:00 pm to 6:00 pm
19 / 2-31445
Registration Status: CLOSED -- Please contact the VSCPA at [email protected] or (800) 733-8272 for availability.
Member Price
$139.00 Regular Registration
Your Price
$169.00 Regular Registration
Designed For:

*Recognize how self-directed fiduciaries, custodians, and administrators correctly comply with Congress’s Section 4975 impounded management and investment risk diversification policy requirements *Correctly recognize how the five deadly sins and three punishments derived from self-directed fiduciary


This webcast is an intermediate continuing education webcast.

It is assumed the webcast participant has achieved the following related Algorithm LLC webcasts in advance of this webcast:

Retirement Plan Management and Investment Risk Diversification Standards
Management and Investment Risk Diversification Indices
Prohibited Transaction Chinese Walls
Problematic Self-Directed Retirement Plan Activities
Changing ERISA's Disqualified Person Criterion

When the Bernie Madoff Ponzi scheme manifested devastating investor losses, causation litigation besieged the federal courts. Self-directed IRA account holders ran to the courthouse steps, blaming trustees and custodians for their losses.

Uniformly, the federal courts rejected all self-directed IRA account holder claims. The courts consistently held Section 408 did not create a federal common law cause of action, concluding IRA account holder claims were not afforded ERISA protections. Moreover, the courts rejected state law claims that adhesion contract exculpatory clauses should be set aside on public policy grounds. These cases demonstrated the power of "passive custodian" protections.

However, such passive custodian judicial safe harbors create a paradox. How can it be that a passive custodian derives earnings from protected retirement plan assets, while its superior specialized knowledge remains deliberately ignorant about Congress' Section 4975 impounded risk diversification policy mandate? The short answer is that extant judicial passive custodian protections are an illusion. This webcast resolves the passive custodian paradox by showing self-directed IRA account holders how to properly bring a claim against the custodian under ERISA Section 502(a)(2), notwithstanding adhesion contract exculpatory clauses.


Lesson 1.


Lesson 2.

Self-Directed IRA Litigation Lessons

Lesson 3.

Sec. 4975 Contextual Qualification

Lesson 4.

Sec. 4975 Risk Diversification

Lesson 5.

Custodial Liability Exposures

Lesson 6.

Custodial Liability Management

Lesson 7.


**This course is approved by the IRS. The submission of a completed request form, found under the materials tab, is required for credit. Please send completed form to [email protected].

Delivery Method: Individual webcast
CPE Credit: Taxes
Program Level: Intermediate

Related Events

The Virginia Society of CPAs (VSCPA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org.

For more information regarding refund, complaint, program cancellation or other policies, visit our Registration Policies page or call (800) 733-8272.