Types of Fiduciaries
Responsible for signing the form 5500
What is a 3(16) plan administrator?
Responsible for employee education and enrollments.
What is a financial advisor?
The maximum 401k PS contribution limit for 2025.
What is the lessor of 100% of income or $70,000?
A type of managed care organization, you use a network of doctors, hospitals, and other health care providers that your insurance company has pre-approved for services and payment. They’re called in-network providers.
What is a HMO?
P policy that guarantees payment of a death benefit to beneficiaries in exchange for level, regularly-due premium payments. The policy includes a savings portion, called the “cash value,” alongside the death benefit. In the savings component, interest may accumulate on a tax-deferred basis.
What is whole life insurance?
Advises on fund menus and helps with monitoring.
What is a 3(21) advisor?
Prepares plan documents, amendments, and IRS plan filings.
What is a third-party administrator?
A co-fiduciary who agrees to take on specific tasks for plan administration that may include signing distributions, hardship, the 5500 form, and tracking eligibility.
What is a 3-16 Fiduciary?
The most the insured has to pay for covered services in a plan year.
What is an out-of-pocket maximum?
A rider that allows the insured to use anywhere from 25% to 100% of the death benefit while still alive, depending on your insurer and policy if diagnosed with a terminal illness.
What is an accelerated death benefit?
Has the authority to draft the investment policy statement and make investment changes.
What is a 3(38) advisor?
Coordination of the payroll uploads, provides training and access to participant and plan sponsor websites.
What is a Recordkeeper?
A required 401k plan provision for small businesses establishing a new plan who employ greater than 10 employees.
What is auto-enrollment?
A healthcare account that allows the employees to contribute up to a maximum of $3,300 on a pretax basis. The employer can also contribute $3,300 for the employee.
What is a flexible spending account?
A policy that offers a death benefit for a specified period of time.
What is a term policy?
Signs distributions, loans, and hardship forms.
What is a 3(16) plan administrator?
Prepares enrollment and education materials.
What is a Recordkeeper?
An investment strategy that involves investing the same amount of money in a target security at regular intervals over a certain period, regardless of price. Investors may lower their average cost per share and reduce the impact of volatility on their portfolios.
What is Dollar Cost Averaging?
A healthcare account that allows a maximum contribution of $4,300 for employee-only if meeting certain qualifications. It may have an option to invest the funds in securities or other investments.
A yearly payment made by an insurance company to its policyholders, most commonly distributed in conjunction with permanent life insurance and long-term disability income insurance policies.
What is a dividend?
Assures the plan remains in compliance with the plan document, required testing, and participant notices.
What is a 3(16) administrator?
Distributes the Summary Annual Report.
What is a TPA?
A plan provision that will allow passage of ADP/ACP testing that contains auto-enrollment and escalation that can contain a 2-year vesting schedule.
What is a QACA (Qualified Automatic Contribution Arrangement)?
A separate written plan maintained by an employer for employees that meets the specific requirements and provides participants an opportunity to receive certain benefits on a pretax basis.
What is a cafeteria plan?
A cash value life insurance policy that has lost its tax benefits because it contains too much cash. Once the Internal Revenue Service (IRS) relabeled, it loses the tax breaks for withdrawals and loans from the policy. This permanent change can happen when you pay excess premiums in too short a period.
What is a modified endowment contract (MEC)?