ERISA 403(b) Plan Requirements

Question 1

A copy of the SPD is required to be furnished to the DOL upon plan establishment
True
False

Answer 1

False
SPDs are not sent to the DOL

Question 2

A 403(b) plan may not pay an alternate payee before the participant reaches normal retirement age
True
False

Answer 2

False
A plan may permit an alternate payee to receive a distribution due to QDRO prior to the participant incurring a distributable event

Question 3

A 403(b) plan that is subject to the QJSA rules under ERISA does not need to offer a QJSA to a participant whose account balance is less than:
a. 5000
b. 10,000
c. 15,000
d. 18,500

Answer 3

5000
A plan is not required to offer QJSA distribution to a participant whose account balance is less than 5,000

Question 4

Plans sponsored by governmental organizations do not file a Form 5000
True
False

Answer 4

True
Governmental and non-electing church organizations are not subject to ERISA and therefore are not required to file Form 5500

Question 5

Under ERISA, if there have been no amendments made to a plan, participants must be provided a new SPD after how many years
a. 5
b. 7
c. 10
d. An employer does not need to furnish participants a new SPD if there are amendments to the plan

Answer 5

10
ERISA requires a new SPD be furnished every 10 years if no amendments have been made to the plan. This is rarely the case as discretionary amendments and required amendments due to changes in the law will typically occur within any 10 year period

Question 6

What is the required minimum amount of an ERISA bond?
a. 1000
b. 5000
c. 10000
d. 25000

Answer 6

1000
The minimum amount required for an ERISA bond is 1000