SIE practice questionhardERISA
The Employee Retirement Income Security Act (ERISA) applies to which of the following?
- AIndividual retirement accounts (IRAs)
- BGovernment pension plans
- CSocial Security benefits
- DPrivate employer-sponsored retirement plans such as 401(k) plans✓ Correct answer
Explanation
Why D — Private employer-sponsored retirement plans such as 401(k) plans
ERISA sets minimum standards for private employer-sponsored retirement plans, including 401(k), pension, and profit-sharing plans. It does not cover government plans, church plans, IRAs, or Social Security benefits. ERISA is enforced primarily by the Department of Labor, with tax-related rules handled by the IRS.
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