What You Should Know About Your Retirement Plan - 401k Rules and regulations
Few investments are more important than the one you have in your retirement
plan. Because the average American will rely on savings for 18 years after
retirement, it is essential that you understand your rights and responsibilities
under your retirement plan.
Participants in retirement plans have certain rights that are governed by
Federal law. They also have responsibilities. Similarly, the people who sponsor
your retirement plan also have rights and responsibilities. Most are spelled out
by a law called the Employee Retirement Income Security Act of 1974 (ERISA).
This booklet explains some of the important features of this law.
For example, the booklet outlines the role of different Federal agencies in
regulating plans. It describes the obligations of your employer (or other
appropriate plan official) to provide you with information about the plan, and
tells you what information must be made available automatically, at regular
intervals, and, in many cases, at no cost to you. It also points out the
importance of keeping informed of any changes in your plans rules of operation.
This information tells you what is generally required to become eligible for
your plan, including how long you may have to be an employee before becoming a
participant. Important concepts such as accruing benefits and becoming vested in
your benefits are explained.
401k Rules (Part 1):
ERISA and Your Retirement Plan
401k Rules (Part 2):
Your Right to Plan Information
401k Rules (Part 3):
Benefit Accrual and Vesting
401k Rules (Part 4):
Payment of Benefits
401k Rules (Part 5):
Providing Survivor Benefits
401k Rules (Part 6):
Benefits Claims and Filing
Suit
401k Rules (Part 7):
Dividing Benefit for Family Support
401k Rules (Part 8):
Inadequate Plan Funding Protections
401k Rules (Part 9):
Plan Terminations and Mergers
The booklet also answers common questions about how changes in your employee
status might affect your retirement benefits, such as termination or returning
to your job after an interruption of employment. And it discusses the potential
impact on your plan of mergers, acquisitions and plant shut downs.
Other important features include:
A description of your
plan fiduciaries duties to invest
your money prudently and the sanctions against fiduciaries who misuse or
mismanage your money.
An explanation of the rules that require your employer to adequately fund
your pension plan, as well as a description of the penalties for employers who
fail to comply with minimum funding requirements.
Instructions on how to file a claim for a retirement benefit and how to
appeal for a review of any denial of your claim.
The information contained in the following pages answers the most common
questions about retirement plans. Keep in mind, however, that this booklet is a
simplified summary of participant rights and responsibilities, not a legal
interpretation of ERISA.
Source: Department of Labor
401k Rules and Regulations: