Qualified Tax Deferred Retirement Plan

Definition An individual who owns more than 5-percent of a company. 5-percent ownership affects qualified plans in several ways. These include: A 5-percent owner is

2-Year Rule ( SIMPLE IRA) 5-percent owner 59 1/2 ( age 59 1/2) 60-day rollover rule 70 1/2 (Age 70 1/2) 72(t) Payment 401(k) Plan

Definition Test used to determine whether minimum coverage requirements are satisfied under a qualified plan (qualified retirement plan) A plan satisfies the average benefit test

Definition Rate of interest on which an account balance is assumed (or projected) to grow.  The assumed rate of interest must be within IRS approved

Definition A unit of measure or calculation that is used to determine an annuity payment amount. Referring Cite Annuity contract, Rule 22c-1

Definition A contract between an annuitant and the issuer , the terms of which promises to pay the annuitant income. The income is usually for

Definition The act of scheduling payments in the form of an annuity, usually for a fixed amount for a fixed period or over the annuitant’s

Definition One of the methods used to calculate substantially equal periodic payments (SEPP), also referred to as 72(t) payments. Under the fixed annuitization method, the

Definition The period during which an annuitant receives annuity payments from an annuity or other financial product. For retirement plan purposes, distributions from defined benefit

Definition One of the methods used to calculate substantially equal periodic payments (SEPP), also referred to as 72(t) payments. Under the fixed amortization method, the