IRA Rollover » ERISA

ERISA Exemptions

admin — Fri, 02 Oct 2009 15:23:29 +0000

ERISA prohibited transactions exemptions The U.S. Department of Labor has, under authority granted by ERISA, issued a series of exemptions from ERISA ’s prohibited transaction rules which allow plans and broker/dealers to engage in some but not all types of securities transactions. These ERISA exemptions also generally apply to IRA retirement plans and Keoghs. The range of [...]

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IRC And ERISA Law

admin — Sat, 19 Sep 2009 20:24:38 +0000

IRC and ERISA Law on prohibited transactions Both ERISA Law and the IRC Law prohibit plan assets from being used by a fiduciary for certain transactions (known as “prohibited transactions”). These prohibited transactions include the sale, leasing, or lending of plan assets or extension of credit between a plan and a broker/dealer who provides services to [...]

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To Avoid ERISA Duties

admin — Mon, 18 May 2009 16:36:47 +0000

In order to avoid the fiduciary relationship, the financial advisor should: establish that the plan’s fiduciary (i.e., the trustee, investment committee or the adviser), or plan participant if a “self-directed” account, controls the decisions and does not mechanically follow the financial advisor’s buy and sell recommendations. provide the plan’s fiduciary or participant with several investment choices and, [...]

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ERISA Fiduciary Duties

admin — Thu, 01 Jan 2009 13:11:56 +0000

Due to the significant restrictions and responsibilities ERISA regulations place on the financial advisor, branch manager and the financial institution concerned. Usually the financial company will have a policy prohibits any financial advisors from taking discretionary control or otherwise assuming fiduciary responsibility with respect to employee benefit plan, IRA, SEP IRA, or Keogh assets without [...]

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ERISA Rules

admin — Mon, 08 Dec 2008 19:18:05 +0000

If there is a financial institution or advisor who is a fiduciary with respect to the 401k Retirement Plan, usually only agency transactions will be permitted in that account. No commissions are received from such agency transactions unless without certain written disclosures and reports to the plan. Moreover, the plan’s trustees must give written permission. Financial [...]

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ERISA Regulations

admin — Thu, 06 Nov 2008 14:59:12 +0000

Non Fiduciary ERISA Retirement Accounts Permitted Transactions: Depending on the financial advisory firm the company is associated with, the following investments can be permitted. agency and agency cross principal (but only if the terms are at least as favorable to the plan as an arm’s-length transaction) syndicate issues / underwritings (provided no syndicate member is a fiduciary with respect [...]

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ERISA Law

admin — Mon, 11 Aug 2008 13:07:22 +0000

ERISA Covered Accounts For all intents and purposes, an ERISA covered account is any account established by an employer for an employee that is designed to defer income until termination of employment, death, disability or attainment of a given age, or intended to defray the cost of life, health, or other welfare benefits. The following accounts are [...]

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ERISA Act 1974

admin — Wed, 04 Jun 2008 02:42:32 +0000

ERISA Fiduciary Duty and Standards of Conduct Rules ERISA describes a fiduciary’s duty and standards of conduct as follows: The fiduciary must discharge his or her duties with respect to a plan for the exclusive benefit of participants and beneficiaries and for the exclusive purpose of providing benefits and defraying reasonable plan administrative expenses. A fiduciary must carry [...]

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Definition of Erisa

admin — Thu, 15 May 2008 02:14:41 +0000

Fiduciary Definition of ERISA What is the Fiduciary definition of ERISA? According to ERISA, any person or organization which has discretionary authority, control, or renders investment advice for a fee with regard to either the investment of employee benefit plan assets or the administration of the plan, is a fiduciary with respect to that plan. Under ERISA, a [...]

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ERISA

admin — Sun, 16 Mar 2008 03:37:50 +0000

Q: What is ERISA? A: It’s the US Employee Retirement Income Security Act of 1974 The policy underlying ERISA or the Employee Retirement Income Security Act of 1974 is to protect the interests of retirement plans participants and their beneficiaries in employee benefit plans by establishing standards of conduct, responsibility and obligation for fiduciaries and any person [...]

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404c ERISA Requirements

admin — Sat, 27 Oct 2007 00:55:10 +0000

404c ERISA requires the following be delivered to all retirement plan participants: A written explanation that the plan is intended to comply with ERISA Section 404c and that the 401k Retirement Plan ’s fiduciaries may be relieved of responsibility for investment performance as a result of investment choices made by the retirement plan participant. A description of [...]

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404c ERISA

admin — Sun, 15 Jul 2007 19:51:20 +0000

404c ERISA Compliance To comply with 404(c), DOL regulations generally require that plan participants be provided with: The opportunity to choose from a broad selection of investment choices, including a core of at least three different investment alternatives. Each investment alternative must be diversified and have materially different risk and return characteristics. The opportunity to transfer account balances between [...]

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404c

admin — Thu, 31 May 2007 00:05:29 +0000

This section concerns an overview of how to properly transfer some of the investment responsibility to participants and reduce the retirement plans sponsor’s potential liability. What is ERISA 404c? In order to reduce liability for claims brought against retirement plans sponsors by participants for poorly performing funds in defined contribution plans, 404c and its regulations permit responsibility [...]

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