February 15, 2009

Safe Harbor 403(b) Plan

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Definition

Nongovermental 403(b) plans that make contributions in accordance with a safe-harbor formula, resulting in the plan not being subject to the ACP nondiscrimination testing. Contributions may be made under one of the following formulas:

1. A basic matching formula,

2. An enhanced matching formula, or

3. A nonelective contribution formula

Referring Cite

IRC § 403(b)(12)(A), IRS notice 89-23,

Additional Helpful Information

Contributions to safe-harbor 403(b) plans are immediately 100% vested

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Correction Window for RMD Shortfall

RMD Correction window The correction window is the period during which a missed required minimum distribution (RMD) can be corrected in a way that may

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

A woman who is an active participant in life and her retirement plan

What does active participant mean? Find the answer here

Who is an active participant? Active participant status affects an individual’s eligibility to take a deduction for a contribution to a traditional IRA on his/her

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Safe Harbor 403(b) Plan

Learn More

Definition

Referring Cite

Additional Helpful Information

Related Articles Tutorial or Other Content

Keep Learning

Correction Window for RMD Shortfall

Qualified Charitable Distribution (QCD)

Saver’s Credit

What does active participant mean? Find the answer here

The Retirement Dictionary was created to provide IRAs and employer retirement plan information in an easy-to-understand manner for individuals at all levels of expertise and to help educate everyone about how retirement plans work.

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Safe Harbor 403(b) Plan

Learn More

Definition

Referring Cite

Additional Helpful Information

Related Articles Tutorial or Other Content

Keep Learning

Correction Window for RMD Shortfall

Qualified Charitable Distribution (QCD)

Saver’s Credit

What does active participant mean? Find the answer here

The Retirement Dictionary was created to provide IRAs and employer retirement plan information in an easy-to-understand manner for individuals at all levels of expertise and to help educate everyone about how retirement plans work.

Be among the first to know when

IRA Rules Change

IRA Rules
Change