Is a Simplified Employee Pension (SEP) part of the Employee Retirement Income Security Act (ERISA)?

A Simplified Employee Pension plan, or any other retirement plan, is a qualified retirement savings plan under the Employee Retirement Income Security Act as long as it adheres to the provisions of the act. ERISA was put in place to protect the retirement savings of individuals by requiring any plan to abide by certain guidelines in terms of who is eligible to participate, minimum and maximum contribution limits, vesting and accrual schedules, who maintains and administrates the plan, terms of withdrawal or distribution of funds, and methods of recourse for plan participants should a plan be terminated or if the managing party is in breach of fiduciary duty.



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