South Carolina Life and Health Practice Exam

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Study for the South Carolina Life and Health Exam. Engage with flashcards and multiple choice questions; each question is outlined with hints and explanations. Prepare for your certification journey!

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What type of retirement plan is specifically mentioned in ERISA regulations?

401(k) plans
Health Savings Accounts
Flexible Spending Accounts
Life insurance policies

The correct answer is: 401(k) plans

The correct choice refers to 401(k) plans, which are explicitly mentioned in the Employee Retirement Income Security Act (ERISA) regulations. ERISA was enacted to protect the interests of employee benefit plan participants and their beneficiaries by establishing standards of accountability and transparency for private pension and health plans. 401(k) plans are a specific type of defined contribution plan that allows employees to save for retirement on a tax-deferred basis. Under ERISA, 401(k) plans must adhere to certain requirements regarding the management of funds, reporting, and disclosure. This includes ensuring that participants are fully informed about their investment options and that fiduciaries manage the plans in the best interests of participants. In contrast, the other options listed do not fall under ERISA regulations as types of retirement plans. Health Savings Accounts and Flexible Spending Accounts are considered health benefit options and do not primarily pertain to retirement savings, while life insurance policies are not classified as retirement plans under ERISA. Therefore, 401(k) plans are the only option directly referenced in relation to ERISA, making it the correct answer.