Employer-Sponsored Qualified Plans and ERISA
Chapters in this video
- 0:00 ERISA scope: private sector covered, government and church exempt
- 1:06 Eligibility at age 21 and one year of service
- 2:12 Employer vesting schedules versus immediate employee deferral vesting
- 3:04 Fiduciary duties: prudent expert, loyalty, diversification
- 3:38 2026 401(k) deferral limits and catch-up tiers
- 4:44 Defined benefit employer risk versus defined contribution employee risk
- 5:17 403(b) ERISA coverage and governmental 457(b) penalty exception
- 6:18 Profit-sharing, stock options, and employee stock purchase plans
- 6:55 NQDC as unfunded mere promise and general creditor status
- 7:29 Rapid-fire exam recap
What this video covers
- Which plans ERISA covers: private-sector 401(k), 403(b), defined benefit, defined contribution, profit-sharing, and ESOP plans, versus exempt governmental 457(b) and church plans
- ERISA eligibility requirements: age 21 plus one year of service (1,000 hours in 12 months), and why both conditions must be met
- Vesting schedules for employer contributions: 3-year cliff vesting versus 2-to-6-year graded vesting, and why employee elective deferrals are always 100% immediately vested
- Fiduciary duties under ERISA: duty of loyalty, exclusive purpose, prudent expert standard, diversification, and plan-document compliance
- 2026 401(k) elective deferral limits: $24,500 under age 50, $32,500 with standard catch-up (ages 50-59 and 64+), and $35,750 with enhanced catch-up (ages 60-63)
- Defined benefit versus defined contribution plans: who bears investment risk, and how monthly payouts differ from individual account balances
- 403(b) and 457(b) distinctions: ERISA coverage for private nonprofit 403(b) plans, ERISA exemption for governmental 457(b) plans, and the 10% early withdrawal penalty exception on governmental 457(b) separation
- Non-qualified deferred compensation (NQDC): why it is an unfunded mere promise to pay, why the employee becomes a general creditor in bankruptcy, and why assets remain employer property
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 6 course also includes adaptive practice questions and spaced-repetition flashcards.