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8 Cards in this Set
- Front
- Back
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1. Income that would normally be taxed can be used to earn money over the life of the plan
2. the employee's taxable income will be lower when he/she retires, lowering the retiree's tax rate |
2 advantages of having defined contribution plan for the employee:
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401K Plan
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an employer permits an employee to defer receipt of a percentage of their income by contributing it into this plan
**must be 21 years of age |
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Simplified Employee Pension (SEP)
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deisgned for self employed persons and small business owners
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Profit Sharing Plan
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employer establishes to allow employees to participate in company profits
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IRA
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personal retirement savings plan
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Section 457 Plan
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rules that govern all nonqualified deferred compensation plans of governmental employees as well as non church controlled tax exempt organizations
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403(B) Plan
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rtirement plans available to only public school, hospital, church , or other non profit organizations
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KEOGH Plans
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tax deferred retirement savings plan for the self employed
*** cant tkae money out without a penalty before th eage of 59 and 1/2 |
