Money purchase pension plan
Definition An employer-sponsored qualified-retirement-plan, established by an employer for the benefit of it’s employees and their beneficiaries. Money purchase pension plans are defined contribution plans
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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Minimum Participation Test
Definition A test that must be performed for defined benefit plans , to ensure that the plan benefits at least the lesser of — 50
Pension Protection Act Of 2006 (PPA)
Definition Legislation signed into law on August 17 2006, for which the primary goals was to protect and enhance the retirement savings and pension provisions.
Pension Plan
Definition An employer sponsored retirement plan designed to provide participants with annuitized income stream during retirement. Pension plans include defined benefit plans, money purchase pension
Pension Benefit Guaranty Corporation (PBGC)
Definition The Pension Benefit Guaranty Corporation (PBGC) is a government organization charged with the responsibility of protecting the retirement incomes of participants in private-sector defined
Payer ( Payor)
Definition The party responsible for processing distributions from retirement plans and performing any required tax-withholding. For IRAs and 403(b) plans, the payer is the financial institution which
Participant
Definition An eligible individual who participates in an employer sponsored retirement plan upon or after meeting the plan’s eligibility requirements. The term is also used
Partial termination
Definition Generally, the facts and circumstances in a particular case determines whether a partial termination has occurred. The facts and circumstances that are usually considered
Paired plan
Definition More than one standardized plans maintained by the same employer ( plan sponsor), so as to coordinate certain provisions. For instance, a plan sponsor
Standardized Plans
Definition A Master&Prototype( M&P) plan that meets requirements that include the following: The provisions governing eligibility and participation are such that the plan by its
