Company A currently has their plan at an insurance company.

One particular HCE (who is not a principal) would like to move his assets out of the insurance contract to another location.

Four options have been discussed 1 - Taking an in-service withdrawal; 2 - Using the SDBA feature; 3 - Unbundling the plan at the insurance company to allow for a 2nd custodial account; and 4 - Creating a second plan with a separate investment option (at a mutual fund compnay) where the HCE would be the only participant.

Concerning the 4th option - if the HCE were the only participant in the second plan, either b/c of eligibility or lack of interest by NHCE's, would this have an impact (if at all) current and effective availability discrimination issues?