Section 404 C

I provides an opportunity for a participant or beneficiary to exercise control over assets in his individual account see paragraph b 2 of this section.

Section 404 c. An erisa section 404 c plan is an individual account plan described in section 3 34 of the act that. 31 1986 in taxable years ending after such date but this section 404 i of this title to continue to apply with respect to credits under section 41 of this title attributable to compensation paid or accrued before jan. 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.

For example erisa section 404 c plan protects a plan fiduciary from being liable for the losses suffered in a down market by the 60 year old who invests his entire account in an aggressive growth fund. 99 514 applicable to compensation paid or accrued after dec. Section 404 c protection for employer stock investment options when employer stock is offered in the plan there are additional requirements that need to be met in order for plan fiduciaries to obtain 404 c protection for participant investment decisions related to the employer stock investment.

1 through the application of guidelines developed by the administrator in conjunction with the secretary which guidelines shall be based upon criteria comparable to the criteria applicable to the territorial seas the contiguous zone and the ocean under section. This protection applies only to participant directed investments and not to investments required under the plan or directed by the plan sponsor. B subject to subsection c of this section each such disposal site shall be specified for each such permit by the secretary.

Erisa section 404 c compliance checklist erisa section 404 c relieves plan sponsors and other fiduciaries from liability for losses resulting from participants direction of their investments. I sections 404 c 1 and 404 c 2 of the act and paragraphs a and d of this section apply only with respect to a transaction where a participant or beneficiary has exercised independent control in fact with respect to the investment of assets in his individual account under an erisa section 404 c plan.