Graded Vesting
Definition Vesting according to a schedule where the participant is vested at a percentage amount (that is less than 100%) each year until he/she accrues
Qualified Tax Deferred Retirement Plan
A retirement savings account in which earnings grow tax-deferred. Special rules apply to contributions, distributions, and moving assets to, from, and between accounts.
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403(b) Final Regulations Issued
The Treasury Department and the IRS released final regulations related Section 403(b) Plans These regulations are the first comprehensive section 403(b) regulations since 1964, and
Frozen Plan
Definition A qualified plan which has been amended to discontinue contributions and benefit accruals, but assets have not been distributed to participants or their beneficiaries.
Family Member Aggregation
Definition Rule that required a highly compensated employee who is a 5-percent owner or one of the ten most highly compensated employees and any family
Employer matching contribution (or matching contribution)
Definition Contributions made by the employer in addition to & contingent upon salary-deferral contributions made by the participant. Matching contributions can be made to 401(k)
Cliff vesting
Definition Vesting according to a schedule where a participant becomes immediately 100% vested after accruing a number of years of service, as opposed to a
Break In Service
Definition Calendar year, plan-year or other plan-designated 12-consecutive-month period, during which a participant fails to work the number of hours required to ensure continuation of
Basis
Definition Amounts representing nontaxable portion of a balance in a retirement account. Also referred to as after-tax amounts Basis comes from the sources which includes
Bad-Boy Clause
Definition A provision in a qualified plan, under which a participant would lose – usually unvested– benefits, if the participant engages in dishonest activity such
IRA
Get to know your 457 Plan: Rollover, Eligibility and Withdrawal Options
What is a 457 Plan? The 457 plan, also referred to as a deferred compensation plan, is a retirement plan established by a state or
