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15 Cards in this Set
- Front
- Back
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Qualified plan |
a retirement or employee compensation plan established and maintained by an employer that needs specific guidelines spelled out by the IRS and consequently receives favorable tax treatment. |
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ERISA or the employee retirement income security act of 1974 |
a federal law that sets a minimum standards for most voluntary established pension and health plans in Private industry to provide protection for individuals in these plans |
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Defined contribution plans |
A tax-qualified retirement plan in which annual contributions are determined by a formula set forth in the plan. Benefits paid to a participant vary with the amount of contributions made on the participants behalf and the length of service under the plan. |
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Profit sharing plans |
Any plans where buy a portion of a company's profits is set aside for distribution to employees who qualify under the plan.. |
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Defined benefit plans |
Pension plans under which benefits are determined by a specific benefit formula |
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401K plan |
a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account. |
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401b plan |
your retirement plan for certain employees of public schools, employs a certain tax-exempt organizations, and certain ministers. |
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Keogh plans |
a plan that is designed to fund retirement of self-employed individuals; name derived from the author of The Keogh act HR-10, under which contributions to such plans are given favorable tax treatment. |
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Simplified employee pensions or SEP |
A type of qualified retirement plan under which the employer contributes to an individual retirement account set up and maintained by the employee |
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Simple |
a qualified employer retirement plan that allows small employers to set up tax-favored retirement savings plans for their employees |
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Traditional IRA |
a personal qualified retirement account through which eligible individuals accumulate tax-deferred income up to a certain amount each year, depending on a person's tax bracket. |
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Roth IRA |
An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year.both earnings on the account and withdrawals after the age of 59 1/2 are tax-free funds are taxed as income before the contribution is made. no age limit for mandatory withdrawal distributions |
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Qualified Roth IRA withdrawals |
funds must have been held in the account for a minimum of five years; and if the withdrawal occurs for one of the following reasons no portion of withdraw is subject to tax The owner has reached age to 59 1/2 The owner dies or becomes disabled The distribution is used to purchase a first home |
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Non-qualified Roth IRA withdrawal |
If a withdraw is taken without meeting the above criteria and the amount of the withdrawal exceeds the total amount contributed it is a non-qualified withdraw. The earnings from the contribution become taxable |
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Rollovers |
an individual retirement account established with funds transferred from another ira or qualified retirement plan that the owner had terminated. |
