The study also notes that while the fraction of total assets is smaller in the individual account plans
of those with lower net worth, lower income, and who are younger, these assets do comprise a significant portion of their total financial assets--more than one-third, in many cases.
404a-5 which addresses fiduciary requirements for disclosure in participant-directed individual account plans
2006-27 if it has already terminated under the special DOL regulations governing terminating abandoned individual account plans
Effective in 2007, the PPA provides for a prohibited transaction exemption for certain investment advice to participants in individual account plans
Effective 2007, the PPA provides for a prohibited transaction exemption for certain investment advice to participants in individual account plans
The design features of voluntary individual account plans
can affect whether individuals participate in the accounts and what retirement incomes they will receive.
The carve-out with transfers has the same effect on saving as the other individual account plans
under conventional scoring rules, but a larger effect under the special scoring rule because the transfers crowd out additional on-budget spending.
That exception also imposed certain requirements for the purchase of "qualifying employer securities" (generally, the employer's common stock having the greatest voting power and dividend rights or, in certain cases, noncallable preferred stock convertible into common stock) by ESOPs, as well as by other individual account plans
not designated as ESOPs, and on the "exempt loans" an ESOP might enter into to purchase qualifying employer securities.
403(b) plans are almost always run as participant directed individual account plans
, and many of them choose to comply with ERISA section 404(c).
This exception also applies to other eligible individual account plans
, as defined in ERISA, such as 401(k) plans.
Compliance with 404(c) is voluntary; to qualify for protection, individual account plans
must give participants a broad range of investment alternatives and an opportunity to exercise control over some or all of the assets in their accounts.
411(d)-6T(19) addresses the participant notice requirement under ERISA Section 204(h), under which plan administrators must provide written notice to plan participants when future benefit accruals are reduced in defined benefit plans or individual account plans
subject to the ERISA Section 302 funding requirements.