Yes: Section 412 of ERISA required that fiduciaries and other persons who handle or are responsible for the assets of a qualified plan must be bonded. The bond is to reimburse the plan if any plan assets are lost through the fraud or dishonesty of persons handling plan funds.  Fraud or dishonesty includes such acts as theft, forgery, embezzlement, misappropriation, or willful misapplication of plan assets.


QDIA stands for “qualified default investment alternative” Under the Pension Protection Act (PPA) of 2006, fiduciary relief was provided for retirement plan sponsors who automatically place participants (who do not specifically choose other investments) into alternatives such as target-date or balanced fund investments. QDIAs are intended to help ensure that plan participants who may not be comfortable or knowledgeable about making investment decisions are invested in well diversified investment portfolios with appropriate time horizons.


A Plan Sponsor is a designated party, usually a company or employer, that sets up the retirement plan for the benefit of the organization’s employees.  A Plan Administrator is the person who is identified as having responsibility for running the plan.  It could be the employer, a committee of employees, a company executive, or someone hired for that purpose.


Form 8955-SSA is a tax form to report the participants who have previously left the company but still have a vested balance in the plan.

A codes are for employees who terminated in the year prior to the current plan year being tested and still have a vested balance in the plan as of the last day of the plan year being tested.

D codes are for employees that were previously reported as A codes and should be deleted from the record either for having removed all of their money from the plan, or for being rehired and therefore active in the plan again.


The Form 5500 is the annual report of the employee benefit plan and is required by the Department of Labor.

“The Form 5500 Series is an important compliance, research, and disclosure tool for the Department of Labor, a disclosure document for plan participants and beneficiaries, and a source of information and data for use by other Federal agencies, Congress, and the private sector in assessing employee benefit, tax, and economic trends and policies. The Form 5500 Series is part of ERISA’s overall reporting and disclosure framework, which is intended to assure that employee benefit plans are operated and managed in accordance with certain prescribed standards and that participants and beneficiaries, as well as regulators, are provided or have access to sufficient information to protect the rights and benefits of participants and beneficiaries under employee benefit plans.” – IRS website


 

 

 

 

 

 

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