The article discusses the ramifications to hedge funds and other investment vehicles that are deemed to hold plan assets under the regulations of the U.S. Department of Labor. Fund managers who hold plan assets are considered to be fiduciaries under Employee Retirement Income Security Act (ERISA)...
IRAs Not Subject Not all employer plans are subject to ERISA. For example, government retirement plans are exempt from ERISA. IRAs are not subject to ERISA because anindividual retirement account (IRA)is not considered an employer plan. Also, nonqualified plans, which do not qualify fortax-dedu...
A fixed index annuity is a growth annuity which is tied to a particular stock index. This is subject to a rate floor and a rate cap. The floor makes sure that no matter how badly the index does in a particular year, you will never suffer a negative return. In other words, even if...
The rule affects people who are saving and investing for retirement and who use an advisor who acts as a fiduciary under the Employee Retirement Income Security Act (ERISA). Those advisors are subject to the higher standard—the fiduciary "best advice" standard rather than the lower, merely "s...
This differs from other types of annuities for which the tax burden is “front loaded.”Safety of Principal— Funds are guaranteed by assets of insurer and not subject to the fluctuations of financial markets.No sales or administrative charges— Immediate annuities do not have annual account ...
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Essentially, a plan is required to make those deposits at the earliest reasonable date to segregate participant contributions from the employer's general assets. Small employers with 100 or fewer employees are subject to a safe harbor deadline of 7 business days after...
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Default risk: Workers' 401(k)s are subject to the Employee Retirement Income Security Act (ERISA), which offers creditor protection for people with those plans. 457(b) plans aren't subject to ERISA. Unlike 401(k)s, savings in non-governmental 457(b)s are at risk from creditors if the...
A surety bond (pronounced “shoo-ruh-tee”) is a legally binding agreement involving three parties—the Principal, the Obligee, and the Surety. In this agreement, the Surety provides a financial guarantee to the Obligee if the Principal defaults on their obligations, such as not being able ...