Final answer:
All of the following are requirements imposed by law on qualified tax-advantaged retirement plans, except employee communications.
Step-by-step explanation:
All of the following are requirements imposed by law on qualified tax-advantaged retirement plans, except employee communications.
Qualified tax-advantaged retirement plans, such as 401(k)s and 403(b)s, are subject to various requirements to maintain their tax-advantaged status. These requirements include nondiscrimination testing, contribution limits, vesting requirements, and distribution rules. However, employee communications are not specifically required by law for these plans.
For example, nondiscrimination testing ensures that retirement plans do not favor highly compensated employees over non-highly compensated employees. Contribution limits restrict the amount of money that can be contributed to a retirement plan on a tax-advantaged basis. Vesting requirements dictate how long an employee must work for an employer before they have a right to the employer's contributions. Distribution rules govern when and how retirement plan funds can be withdrawn.