Cfp - Planning For Retirement Needs 2007 - Chapter 1

Front 1

SEP IRA

Back 1

Simplified Employee Pension

Front 2

SIMPLE IRA

Back 2

Savings Incentive Match Plan for Employees

Front 3

Qualified plan

Back 3

Subject to code 401(a) - tax deffered

Front 4

tax-sheltered annuity

Back 4

403(b)

Front 5

Tax-advantaged plans available for private employers

Back 5

SEP, SIMPLE, and 403(b)

Front 6

Nonqualified plan employer's tax deduction is deducted:

Back 6

Deducted at the time employees have taxable income

Front 7

Tax-advantaged plan employer's tax deduction is deducted:

Back 7

Deducted at the time contributions are made to the plan

Front 8

Nonqualified plan

Back 8

deferred-compensation plans

Front 9

Superannuated employees

Back 9

Long-time employees who are not economically productive. (usually they stop producing and are just collecting a paycheck)

Front 10

accumulated earnings tax

Back 10

15% penalty tax for C corps that attempt to reduce the shareholder's tax burden by accumulating earnings instead of paying them

The federal government produced this tax to deter investors from negatively influencing a company's decision to pay dividends. Essentially, this tax persuades companies to issue dividends, rather than retaining the earnings.

Front 11

ESOP

Back 11

Employee Stock Ownership Plan