Custodial Account
Definition Brokerage account established to hold assets under a retirement plan or ESA. When establishing a retirement account, the account may be a trust account
401K
A tax-deferred employer-provided retirement savings account, to which eligible employees may defer part of their salary. Salary deferral can be pre-tax or post-tax include Roth 401(k)s.
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Contribution
Definition Amounts added to a retirement account, usually as a result of the participant deferring receipt of compensation in order to have the amount added
Consolidated Omnibus Budget Reconciliation Act ( COBRA )
Definition Law which amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide temporary continuation
Compensation
Definition Income used for purposes of determining amount of contributions made to an employer sponsored plan or IRA. For common-law employees, compensation is usually salary,
Community property state and marital property state
Definition State where assets earned during a marriage are deemed to be the joint property of the married couple Community property states are Arizona, California,
Common-law Employee
Definition Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will
Commingling
Definition Mixing of retirement plan assets that may be required to be maintained separately for certain reasons. For instance, adding regular IRA contributions to a
Cashout ( Involuntary Cashout)
Definition An involuntary distribution of a separating participant’s vested account balance of $5,000 or less, under a qualified plan, 403(b) or 457(b) plan. This involuntary
Cash Balance Plan
Definition A defined benefit plan that includes (a) career average’ features of a defined benefit plan, which uses a participant’s earnings history to determine the
Carryback Contribution
Definition Contribution made to a Roth IRA, Traditional IRA or education savings account, from January 1 through to April 15 of the current year ,
