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8 Cards in this Set
- Front
- Back
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what is a reverse annuity mortgage
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RAM for short, is A mortgage in
which the lender uses the borrower’s house as col- lateral to buy an annuity for the borrower from a life insurance company; also called an equity conversion. |
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what is a defined-contribution plan
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A plan—profit shar-
ing, money purchase, Keogh, or 401 (k)—that provides an individual account for each partici- pant; also called an indi- vidual account plan. |
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what is a 401 (k) (TSA) plan?
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A plan
under which employees can defer current taxa- tion on a portion of their salary. |
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what is vesting?
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An employee’s
right to at least a portion of the benefits accrued under an employer pen- sion plan, even if the employee leaves the com- pany before retiring. |
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what is a defined-benefit plan?
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A
plan that specifies the benefits the employee will receive at the normal retirement age. |
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what is a individual retirement
account ? |
Otherwise known as a IRA, A special
account in which the employee sets aside a por- tion of his or her income; taxes are not paid on the principal or interest until money is withdrawn from the account. |
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what is a Keogh plan?
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A plan in
which tax-deductible con- tributions fund the retire- ment of self-employed people and their employ- ees; also called a self- employed retirement plan. |
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what is an annuity?
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A contract that
provides an income for life. |
