A plan in which employees may elect to make pre-tax contribution to an employer-sponsored plan in lieu of receiving taxable income.
Assigning an amount or percentage of the asset to one or many funds.
The recipient of a benefit, such as in a will or trust.
A promise by a corporation or government to repay the bondholder principal plus interest.
Compensation is but is not limited to, base salary, commissions, bonuses, overtime and vacation pay.
An amount of money set aside for the participant’s use at retirement.
Defined Benefit Plan
An employer sponsored retirement plan providing a predetermined benefit for the plan participant upon retiring.
Defined Contribution Plan
A type of qualified plan in which a participant’s benefits are based solely on the participant’s account balance; the account balance depends on the level of employer and employee contributions and the earnings on those contributions.
This is a qualified retirement plan distribution that is deposited directly into a Traditional IRA.
A specified amount paid out to the participant by the financial institution. * Diversified: Assets spread among various funds.
A share of profits paid to a stockholder.
These are IRAs that can be contributed to on a non-deductible basis, for the purpose of saving for qualified educational expenses with tax-complimentary distributions. If the funds are not used for one child, they can be rolled over to the next child’s Education IRA.
A list used to compare fund performance.
Individual Retirement Account (IRA)
An individual retirement account or an individual retirement annuity that holds assets on a tax-deferred basis.
To put money into a stock or bond with the purpose of obtaining profit or interest.
The voluntary company contribution made to the participant’s account. This varies from plan to plan.
The date when a bond becomes due and payable.
Money Purchase Pension Plan
An individual account plan, in which the employer has a fixed obligation to make annual contribution to the plan, usually based on a percentage of pay.
A collection of stocks, bonds or other securities owned by a group of investors and managed by a professional investment company.
A savings plan setup to pay out an amount regularly to an individual after retiring.
A fund that is managed by a registered investment company, bank, or insurance company and that is offered as an investment choice in a participant-directed plan.
The securities of an investor.
A financial holding separate from interest and revenue.
Profit Sharing Plan
A profit Sharing Plan is a defined contribution plan under which the employer decides how much will be contributed each year. A participant’s retirement benefits are based on the amount in his individual account at retirement.
Qualified Retirement Plan
A plan that meets the requirements of IRC Sec. 401(a) is a qualified retirement plan and is eligible for special tax considerations.
A tax-complimentary movement of cash or other assets from one retirement plan to another is a rollover.
Tax-deferred growth and a tax-complimentary status for your earnings at retirement, provided specific IRS guidelines are met, are the distinguishing characteristics of the Roth IRA.
SIMPLE IRA (Savings Incentive Match Plan for Employees)
A plan that both employer and employee contribute to an IRA for the participant’s retirement on a tax-deferred basis.
A unit of ownership (equity) in a company.
The purchase and sale of stocks.
A term used to describe the process of setting aside the taxes due until a specified date.
A person or a company to whom the property of the beneficiary is entrusted.
A schedule that states the date in which a participant becomes eligible for a certain percentage of the company’s matching contribution to their account.