What is a 408 B 2 disclosure?
The 408(b)(2) disclosure regulation requires a covered service provider that reasonably expects to be a fiduciary to an ERISA plan to disclose to the responsible plan fiduciary its status as a fiduciary, along with a description of its services and fees.
Who provides the 408b2 disclosure?
Who prepares 408(b)(2) disclosures? Any provider who is paid by indirect compensation and is performing accounting, auditing, actuarial, banking, consulting, custodial, insurance, investment advisory, legal, recordkeeping, securities brokerage, third party administration, or valuation services.
Who is a service provider under ERISA?
These providers can include accounting, actuarial, legal, professional services, consulting, banking, insurance, securities, investment brokerage, recordkeeping, third party administration, and other service providers.
What is erisa 404a?
The ERISA 404a-5 regulation outlines the timing and frequency with which the plan sponsor must provide eligible employees with notices: Before eligible employees can direct their investments. At least annually.
What is a 408 Simple plan?
Section 408 of the Internal Revenue Code allows for employers to establish easy to understand and low documentation retirement plan. The easiest of this group is the 408(p) SIMPLE plan. It establishes individual retirement accounts for your employees to contribute money to via payroll contributions.
Are 403b plans subject to ERISA?
403(b) plans are commonly used by tax-exempt organizations to provide retirement benefits for their employees. Generally, plans that are established or maintained by private tax-exempt organizations are subject to ERISA (governmental and non-electing church plans are always exempt).
How does ERISA work?
ERISA protects the interests of employee benefit plan participants and their beneficiaries. It requires plan sponsors to provide plan information to participants. It establishes standards of conduct for plan managers and other fiduciaries.
What is a 408?
A 408(k) is an employer-sponsored retirement plan akin to a 401(k). The plan is also referred to as a simplified employee pension, which is a type of individual retirement account.
What is 404a fee disclosure?
Employee Fee Disclosure – 404(a)(5) ERISA Section Under 404(a)(5) requires 401k providers to disclose how much employees personally pay each quarter.
What is an ERISA 404 C?
Q: What is ERISA Section 404(c)? Section 404(c) is a specific part of this law that permits employees to direct the investment of their own retirement accounts. An employee may want to direct their own retirement account so they can control how much of their savings are being invested into what types of companies.
Is a SIMPLE IRA a 408?
Section 408(p) describes a SIMPLE IRA Plan as an employer-sponsored plan under which an employer can make contributions to SIMPLE IRAs established for its employees.
What is the difference between ERISA and non-ERISA 403 B plans?
In an ERISA plan, an employer chooses the investment options, controls the deposit and timing of employee contributions and may also provide an employer matching contribution. In a non-ERISA plan, an employer is not involved except in compliance activities.