Editor’s Note: ERISA Tips is a feature provided with you in mind — to make the newsletter more useful to you! If you have any content for ERISA Tips or the 403(b) Advisor that you would like to contribute or suggest, please contact John Iekel, editor of the 403(b) Advisor, at [email protected].
This tip is taken from Michael Webb’s article “The Top Five Things You Need to Know About ERISA 404(c),” which originally ran on Nov. 21, 2014.
Under the final participant fee disclosure regulations under ERISA Section 404(a)(5), what was the most misunderstood aspect of ERISA Section 404(c) — the disclosure requirements — has been simplified, as the 404(a)(5) requirements are essentially replicated. However, other aspects of ERISA Section 404(c) remain important for advisors to master, such as the scope of the protection from liability afforded to ERISA plan fiduciaries.
This tip is taken from Michael Webb’s article “The Top Five Things You Need to Know About ERISA 404(c),” which originally ran on Nov. 21, 2014.
Under the final participant fee disclosure regulations under ERISA Section 404(a)(5), what was the most misunderstood aspect of ERISA Section 404(c) — the disclosure requirements — has been simplified, as the 404(a)(5) requirements are essentially replicated. However, other aspects of ERISA Section 404(c) remain important for advisors to master, such as the scope of the protection from liability afforded to ERISA plan fiduciaries.
Practice Pointer: Those advisors who are well versed in the important aspects of ERISA 404(c), as well as the related 404(a)(5) participant fee disclosure regulation, should enjoy a competitive advantage in the ERISA 403(b) marketplace over advisors who are not cognizant of such issues.
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