IRA Rollover

Posts Tagged ‘plan participants’

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 investment alternatives
  and/or change investment direction at least once within any three-month period (or more often if reasonably needed due to the volatility of an investment
  option).

• Information about the 401k Retirement Plan ’s investment choices to help them make informed investment decisions. Some information must be delivered to all participants while other information must be made available upon request.
  As a result, effective employee education and communication are the most critical elements to successful compliance with ERISA 404c.