What are 404a-5 disclosures?
The rules for these disclosures are in a U.S. Department of Labor (DOL) regulation under Section 2550.404a-5, which is why they’re often referred to as the 404a-5 regulation or 404a-5 disclosures.
What is 404a refrigerant used for?
R-404A is used across a variety of low and medium temperature applications including super market freezers/refrigerators, vending machines, ice machines, refrigerated transport, and industrial refrigerant systems. Starting in 1996, 404A was the primary refrigerant for the above mentioned applications for over twenty years.
What is the difference between air and R 404a?
R-404A is heavier then air and will displace oxygen in a room if a large enough quantity is leaked. This can be said for various types of refrigerants though and is not unique to 404A. When charging systems with R-404A the refrigerant must be in a liquid state.
What is the difference between 404(a)-5 and 408(B)(2)?
But this requirement comes from 404 (a)-5, not 408 (b) (2), which is a very meaningful distinction: failure to disclose a fee charged against a participant’s account under 404 (a)-5 may be a fiduciary breach, but it does not otherwise cause a potentially expensive failure in the prohibited transaction exemption under 408 (b) (2).
What is the difference between 404a5 and 408 B 2?
But this requirement comes from 404(a)-5, not 408(b)(2), which is a very meaningful distinction: failure to disclose a fee charged against a participant's account under 404(a)-5 may be a fiduciary breach, but it does not otherwise cause a potentially expensive failure in the prohibited transaction exemption under 408(b ...
What is a 404a 5 retirement plan?
The ERISA 404a-5 regulation outlines the timing and frequency with which the plan sponsor must provide eligible employees with notices: Before eligible employees can direct their investments. At least annually.
What is a 408 b )( 2 notice?
The 408(b)(2) disclosure regulation requires a covered service provider that reasonably expects to be a fiduciary to an ERISA plan to disclose to the responsible plan fiduciary its status as a fiduciary, along with a description of its services and fees.
What is a 401 K fee disclosure?
The quarterly fee disclosure provides the dollar amount actually charged to the participant's account during the preceding quarter. The quarterly fee disclosure may be distributed as part of the quarterly participant benefit statements which are required for participant-directed plans.
What is the difference between a 401k and a 404?
While 404(c) does not protect 401k fiduciaries from making imprudent investment choices at the plan-level, it does provide protection when participants select plan investments for their personal account and lose money.
What is ERISA 404 retirement plan?
Q: What is ERISA Section 404(c)? Section 404(c) is a specific part of this law that permits employees to direct the investment of their own retirement accounts. An employee may want to direct their own retirement account so they can control how much of their savings are being invested into what types of companies.
What is a 408 b retirement plan?
A 408b annuity is held inside an individual retirement account to shelter the earnings from taxation until you choose to make a withdrawal. To qualify for this preferred tax treatment, a 408b annuity must meet certain contribution and transferability requirements.
What is a 403b plan?
A 403(b) plan, also known as a tax-sheltered annuity plan, is a retirement plan for certain employees of public schools, employees of certain Code Section 501(c)(3) tax-exempt organizations and certain ministers. A 403(b) plan allows employees to contribute some of their salary to the plan.
How does ERISA work?
ERISA protects the interests of employee benefit plan participants and their beneficiaries. It requires plan sponsors to provide plan information to participants. It establishes standards of conduct for plan managers and other fiduciaries.
Are there hidden fees in a 401k?
How Can I Find Hidden 401k Fees? The fees aren't actually hidden, but are in fact disclosed in the prospectus that is given to new customers when they enroll in a plan. This prospectus is updated yearly, reflecting any change in fees.
Who gets a fee disclosure statement?
Participant Fee Disclosure Regulations All employees who participate in a retirement plan where the participants have any control over the direction of their funds (known as a participant-directed plan) must receive a document from their employer that discloses any fees that are or can be charged to the participant.
Do I need to file Form 5500?
A Form 5500 series return is not required to be filed for the 2020 plan year. The first Form 5500 series return required to be filed is for the 2021 plan year.
ABC Corporation 401k Retirement Plan
This document includes important information to help you compare the investment options under your retirement plan.
Document Summary
This document has 3 parts. Part I consists of performance information for plan investment options. This part shows you how well the investments have performed in the past. Part II shows you the fees and expenses you will pay if you invest in an option. Part III contains information about the annuity options under your retirement plan.
Part I. Performance Information
Table 1 focuses on the performance of investment options that do not have a fixed or stated rate of return. Table 1 shows how these options have performed over time and allows you to compare them with an appropriate benchmark for the same time periods. Past performance does not guarantee how the investment option will perform in the future.
What is 404A-5?
ERISA 404a-5 requires plan sponsors to send change notices to retirement plan participants— but when and why? Learn what triggers the need for 404a-5 notices. Home.
What is the 404A-5 regulation?
The rules for these disclosures are in a U.S. Department of Labor (DOL) regulation under Section 2550.404a-5, which is why they’re often referred to as the 404a-5 regulation or 404a-5 disclosures.
What is a DIA in a plan?
Changes to the plan’s general plan-related information require a notice, including the following events: A designated investment alternative (DIA) (commonly referred to as “fund”) is added to or removed from the plan’s investment lineup.
What is 408 B 2?
They are relatively short, precisely written, yet written in such a way to cover that wide range of products and services which are available to plans. 408 (b) (2), however, is often confused with its regulatory sibling, ...
Is a follow up disclosure required?
It is simply a business matter between the fiduciary and the service provider. The only time a follow-up “disclosure” is ever required is if there is a material change in the contract’s terms (including the service fee), and then that disclosure is only required to be made to the plan fiduciary (though there are certain parts of 408 (b) (2) ...
Is 408 B a disclosure rule?
408 (b) (2) is, at its heart, a rule which requires specific, enduring contract terms. It is not a disclosure rule.
What is the R 404A?
By Alec Johnson Feb 25, 2019. Today the HFC R-404A is one of the most commonly used refrigerants in the United States and in the world. You can find it most commercial refrigerators/freezers, in vending and ice machines, in refrigerated transport, and in specific industrial applications.
Why is R-404A being phased out?
R-404A is being phased down and in some cases completely phased out due to it’s high Global Warming Potential and it’s detrimental effect on the climate. In many cases R-404A is the first HFC refrigerant targeted for phasing down HFCs due to it’s extremely high GWP of nearly four-thousand.
What is the history of R-404?
It was then that the CFC refrigerant R-502 was invented. R-502 was a blended refrigerant using HCFCs and CFCs. It was comprised of of R-22 (48.8%) and R-115 (51.2%). This new refrigerant R-502 offered a lower discharge temperature and improved capacity when compared to R-22.
What is the biggest con of R-404A?
The biggest con with R-404A is it’s extremely high Global Warming Potential (GWP). It’s GWP rating is three-thousand nine-hundred and twenty. This number makes it one of the absolute highest GWP refrigerant that is widely used in the world today. In some applications 404A is not the most efficient.
Can you mix 404A with air?
You should never mix 404A with air under. R-404A is heavier then air and will displace oxygen in a room if a large enough quantity is leaked. This can be said for various types of refrigerants though and is not unique to 404A. When charging systems with R-404A the refrigerant must be in a liquid state.
When did R-502 phase down?
When R-502’s turn for phase down came in 1995 a new alternative refrigerant needed to be chosen. At this time the world turned towards HFC refrigerants. One of the very first phase outs was R-12 for automotive applications. It’s replacement was the HFC R-134a.
Is there a phase down schedule for R-404A?
Now, as of 2019, there is no set phase down schedule of R-404A or other HFC refrigerants. The only bright spot is what’s known as the ‘United States Climate Alliance.’.
