Who primarily regulates 401(k) plans?

The primary regulation of 401(k) plans falls under the Employee Retirement Income Security Act (ERISA). This federal law was established in 1974 to set standards for pension and health welfare benefit plans in private industry, including 401(k) retirement savings plans. ERISA outlines the fiduciary responsibilities of those who manage and control plan assets and establishes requirements for reporting and disclosure to ensure that participants are well-informed about their retirement plans.

While the Department of Labor does oversee compliance with ERISA and enforces its provisions, ERISA itself is the legislative framework that primarily regulates 401(k) plans. Thus, understanding ERISA is key for 401(k) plan administrators, as it provides the essential guidelines they must follow to ensure the plans operate according to federal standards and protect the interests of plan participants.

The other choices represent entities that have different roles within the ecosystem of employee benefits and labor relations. For instance, the Federal Reserve Board focuses on monetary policy, while the National Labor Relations Board addresses labor practices and union relations. Neither of these bodies is directly responsible for the regulation of retirement plans like 401(k)s.