MassMutual Selected as New Retirement Plan Provider for The Western States Insulators & Allied Workers Individual Account Plan
While any individual account plan
can offer a variety of choices regarding contributions, investments, and withdrawals, the choice of whether or not to participate is fundamental to a voluntary approach.
This applies to any defined benefit plan or individual account plan
subject to minimum funding standards.
The Motion Picture Industry Pension Plan, the Motion Picture Industry Individual Account Plan
, and the Motion Picture Industry Health Plan are three separate multi-employer, multi-union, Taft-Hartley, labor/management trust funds governed by ERISA.
Families with more assets have the ability to accumulate the most assets in an individual account plan
due to other sources of assets and higher average incomes," writes Craig Copeland, EBRI senior research associate and author of the study in the May 2010 EBRI Notes, available online at www.
404(c) plan is an individual account plan
(generally a profit-sharing, Sec.
The bad news: Using an acceptable method of determining substantially equal periodic payments, which are fixed in amount, may cause an individual's assets in an individual account plan
or an IRA to be exhausted.
Generally, taxpayers pay a 10% penalty on withdrawals from an IRA or employer-sponsored individual account plan
taken before reaching age 59 1/2, unless they take substantially equal periodic distributions over their life expectancy or a joint-life expectancy with the beneficiary.
The authors note that their conclusions are based on assumptions that may understate the reductions in benefits that would occur under an individual account plan
such as the one generally put forward by Bush.
To qualify under ERISA Section 404(0, the plan must (1) be an individual account plan
,(7) (2) provide an opportunity for a participant or beneficiary to exercise control over some or all of the assets in his individual account and (3) provide the participant or beneficiary with an opportunity to choose from a broad range of investment alternatives(8) the manner in which his account assets are invested.
the acquisition is for adequate consideration; - no commission is charged; and - the plan is an eligible individual account plan
, or (for other plans) - the total FMV of such qualifying employer securities and real property held by the plan does not exceed 10% of the FMV of the plan's assets.
To be qualified as "an ERISA section 404(c) plan" under the regulations, the plan must be an individual account plan
in which the participant both (1) has an opportunity to exercise control of the assets in his individual account and (2) chooses from a broad range of investments.