Retirement accounts overview

Updated 2 months ago by Sanjay Vora

There are many different types of retirement accounts. Avestor recommends that fund managers accept only plans that are not subject to ERISA requirements to keep fund operations simple.

A little bit of background.

The Employee Retirement Income Security Act (ERISA), is a federal law that protects members of employer-sponsored retirement plans. In 1974, the federal government enacted a law to protect employer sponsored retirement plans. ERISA sets requirements on what employers can and cannot do around these plans. It also guarantees that pension benefits will be paid through the Pension Benefit Guarantee Corporation.

The following types of plans fall under ERISA and we recommend that fund managers DO NOT accept these accounts.

  • Employer 401(k) Plans
  • 403(b) Plans
  • SEP Plans (Simplified Employee Pension)
  • Keogh plans
  • Profit Sharing Plans
  • Any other plan that is required to file a Form 5500 each year to the US government

The following plans generally do not fall under ERISA requirements.

  • SD-IRAs (Self-directed IRA) plans
  • Traditional & Roth IRA plans
  • Solo 401k plans

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