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)...
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...
A Single Premium Immediate Annuity (sometimes referred to as an "SPIA") may be the right annuity for you if you are looking for payments that begin right away and continue for the rest of your life or for a specified period of time. The annuity is purchased from an insurance company ...
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...
taxable income for the year. The funds in a Traditional IRA grow tax-deferred until withdrawal, at which point they are subject to income tax. This type of IRA is a suitable option for individuals who anticipate being in a lower tax bracket during retirement compared to their current working...
(b) accounts are exempt from certain tests and other guidelines from the Employee Retirement Income Security Act (ERISA) because many employers who offer 403(b) plans do not help fund contributions. If an employer does make contributions to employee 403(b) accounts, they are subject to the ...
Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments...
Is the Plan subject to ERISA? The first step in determining how these regulations affect a 403(b) plan is determining whether the plan is subject to ERISA. Non-ERISA plans generally must meet the following requirements for this status and receive certain exemptions: The plan must be 403(b)...
The funding level of a pension plan is an indication of the health of the plan and the likelihood that the company will be able to pay the monthly retirement benefits when employees retire. If the pension plan is more than 100% funded, it's an overfunded plan, and that's a good thing...
In short, the administrator manages the day-to-day operations of a company retirement savings or pension fund plan. More specifically, the plan administrator ensures that the money is being contributed to the fund correctly, that the participant accounts are properly managed so that they have an...