Associate Professional in Human Resources 2025 – 400 Free Practice Questions to Pass the Exam

The Employee Retirement Income Security Act (ERISA) primarily aims to protect employee benefits, specifically retirement plans. One of the provisions ERISA allows is for employees to withdraw funds from their retirement plans under certain conditions, such as financial hardship or after reaching a certain age. However, such withdrawals often come with restrictions and potential penalties, but the core idea is that the act does provide a framework that enables employees to access their retirement savings under specified circumstances.

While the other options might seem beneficial, they do not accurately reflect the provisions of ERISA itself. For instance, employees are not necessarily entitled to free financial education just by virtue of ERISA, and there are strict regulations governing contribution limits, meaning employees can't simply double their retirement contributions without regard to those limits. Additionally, while transfers of retirement funds are possible—such as through rollovers—ERISA does have specific guidelines and tax implications, which may introduce penalties if not handled correctly. Thus, the focus on the ability to withdraw from retirement plans encapsulates a key aspect of what ERISA allows employees to do within the regulatory framework established by the act.