We are a TPA firm and are proposing establishing a multiple employer plan for a group of unrelated stock traders. If one of the traders is elected as the plan sponsor and the other traders are adopting employers, is the plan sponsor exposed to greater fiduciary liability then are the adopting employers?

Are these stock traders self employed or employees of different employers? Self employed persons have no basis to defer incoem because ther is no separate employer who withhods payment.

The traders are self-employed with no other employees. The group may be adopting a straight profit sharing plan or a 401(k) plan. I know 401(k) plans are available to the self-employed so couldn't each trader make a lump-sum salary deferral contribution prior to year-end and have it deducted on their Schedule Cs?

This post should be under 401(k) plans not nonqualfied deferred comp. Self employed persons can maintain 401(K) or PS plans provided that the non discrimination rules are followed.