FAQ Content

A. Fund Boards Follow Strong Governance Practices to Best Serve Shareholders Fund boards are robustly independent. Federal securities laws require that at least 40 percent of the directors on a fund board be “independent,” as defined by SEC rule. In practice, the proportion of...

I. Introduction to Mutual Fund Boards and Directors II. Duties and Responsibilities III. Service on a Mutual Fund Board IV. Board Structure and Practices I. Introduction to Mutual Fund Boards and Directors What is a mutual fund and how is it structured? A mutual fund is a pool of...

What is a Coverdell Education Savings Account? Formerly known as an Education IRA, a Coverdell Education Savings Account (ESA), is a federally sponsored, tax-advantaged trust or custodial account set up to pay for qualified education expenses. Coverdell ESAs can be opened for any...

Frequently Asked Questions About 401(k) Participant Disclosure DOL’s 404a-5 participant disclosure regulation requires plan administrators (e.g., employers) to make specific disclosures to individuals (e.g., employees) participating in 401(k), 403(b), and other defined contribution...

25th Anniversary of 401(k) Plans: Frequently Asked Questions Why is November 10, 2006, regarded as the 25th birthday of the 401(k)? Subsection (k) of Section 401 of the Internal Revenue Code—the tax code—was added in 1978. It was written to address a narrow tax issue that had pitted...

Frequently Asked Questions About 401(k) Plan Research How large are 401(k)s? As of June 30, 2021, 401(k) plans held an estimated $7.3 trillion in assets and represented nearly one-fifth of the $37.2 trillion US retirement market, which includes employer-sponsored retirement plans...

A 401(k) plan is an employer-sponsored retirement savings plan that allows an employee to contribute a portion of his or her paycheck into a tax-advantaged investment account.

ICI Research 2014 Mutual Fund Reclassification: FAQs What is ICI’s 2014 fund reclassification? To reflect changes in the marketplace, ICI is modernizing its investment objective classifications for mutual funds. What is an "investment objective"? To help members, analysts, the media...

Frequently Asked Questions About Unit Investment Trusts What is a unit investment trust? Unit investment trusts (UITs) are registered investment companies with some characteristics of mutual funds and some of closed-end funds. Like mutual funds, UITs issue redeemable shares (called...