ERISA Issues: Rapid Fire

What this video covers

• Why ERISA covers private employer plans only, and why government plans, church plans, and individual IRAs fall outside its scope
• How fiduciary status is determined by function, not title, and the four duties: loyalty, prudence, diversification, and following plan documents
• The difference between a 3(21) investment adviser (recommends, shares liability) and a 3(38) investment manager (full discretion, assumes liability)
• Why the prudent expert standard under ERISA is higher than the common-law prudent man rule, and how it differs from the Uniform Prudent Investor Act
• Why prohibited transactions with parties in interest are strict liability regardless of intent, and the reasonable-compensation exemption that keeps plans functional
• The participant-directed safe harbor requirements: at least 3 diversified alternatives, quarterly transfer frequency, and the limits on QDIA capital-preservation defaults
• Why a 401(k) rolled into an IRA loses unlimited federal creditor protection, and why the IPS is optional to adopt but mandatory to follow