Election
Definition An action by a participant and beneficiaries to have certain treatments apply to their retirement assets. Examples of elections that can be made by
Retirement Savings Accounts
An account that holds assets that are earmarked for retirement. A retirement savings account can be qualified/tax-deferred or nonqualified.
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Defined contribution plan
Definition What is a defined contribution plan? An employer sponsored qualified-plan , where employees receive a promised contribution to their account . The contribution can
Defined benefit plan (Defined benefit pension plan )
Definition An employer sponsored qualified-plan, where employee benefits are intended to be predetermined and guaranteed. Typically, a participant is promised a monthly benefit upon retirement.
Deferral election (Salary)
Definition A written election made by plan participants to make salary deferral contributions to an employer-sponsored plan that includes salary deferral-feature. Such plans include SARSEPs,
Deferred Compensation Plan
Definition Also referred to as a 457 plan, is a retirement plan established by a state or local government, a nongovernmental unit of tax-exempt organization,
Coverdell Education Savings Account (CESA). Also know as Education IRA and Education Savings Account (ESA)
Definition These accounts are no longer called Education IRAs. Under S. 1190, the name was changed to Coverdell Education Savings Account (CESA) also called Education
Certificate of deposit (CD)
Definition An investment product , where investors typically agree to receive a fixed rate of return on the amount invested. Amounts are usually invested for
Cafeteria Plan
Definition A written plan-offered by an employer- that allows employees to choose between receiving cash or taxable benefits instead of certain qualified benefits for which
What is a blackout period?
Definition Period of more than three consecutive business days, during which participants and beneficiaries under the plan are restricted from performing transactions that would otherwise
412(i) Plan
Definition A defined benefit plan that is funded with individual insurance (life and/or annuity) contracts. Also referred to as an Insurance Contract Plan or Fully
