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26 Cards in this Set
- Front
- Back
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portability |
a pension fund provision that lets employees who were leaving the company to retain and transfer any pension benefits earned to another pension plan |
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defined-contribution plan |
a pension plan in which you and your employer or your employer alone contribute funds directly to a retirement account set aside specifically for you. |
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profit-sharing plan |
a pension plan where the company's contributions vary from year to year, depending on the firm's performance |
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403(b) |
a tax-deferred retirement plan that is essentially the same as a 401(k) plan, except that it is aimed at employees of schools and charitable organizations. |
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ESOP |
An employer contributes company stock into a retirement account instead of cash. |
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funded pension plan |
an employer makes pension fund contributions directly to a trustee who holds and invests those funds |
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SSA benefit average |
As of 2014, the average monthly Social Security benefit for retired workers was 1,294 |
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Social Security |
benefits include death benefits, disability benefits, and health benefits |
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SSA demographics |
By 2048 the ratio will decline to 2 workers for every 1 retiree |
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joint and survivor annuity |
option provides payments over the life of both you and your spouse no matter how long you live |
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Roth IRA |
participants avoid income taxes when withdrawing |
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Keogh plan |
People who are self-employed or work for a small business use this following retirement plan |
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lump-sum option |
Relative to insurance, when a payout arrangement is made in which one receives all benefits in a single payment |
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vesting |
requirement that you must work for a firm for specified period of time prior to gaining ownership of retirement contributions made by employer |
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Money Purchase Plan |
retirement contributions are payable regardless of how well the company performs |
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noncontributory retirement plan |
the fact that your employer provides all the funds for the retirement plan, without any contribution from you. |
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Prepaid College Tuition Plan |
They generally guarantee that your child will be covered only if he attends a public in-state university or college whereas 529 plans do not have this feature |
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Single Life Annuity |
This choice will maximize the size of your annuity check every month |
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SSA benefits |
this pays 42% of your average earnings, does not cover all occupations, and might be taxable |
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SSA credit minimum |
To be eligible for Social Security benefits, you receive one credit for every $1,200 in wages that you earn, up to 4 credits per year. You need 40 total credits to qualify for benefits |
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529 Plan |
type of plan can only be used for college and graduate school, and allows contributions of up to $250,000 |
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annuity payments |
When receiving monthly payments you will pay income tax as if the annuity were normal income |
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annuity for life |
With this option the annuity provides payments over the life of both you and your spouse |
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contributory retirement plan |
you, and usually your employer, pay funds into your retirement plan |
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unfunded pension plan |
Your company pays retirement benefits to current retirees out of current earnings, on a pay-as-you-go basis. |
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