Capital Gains Treatment
Definition Tax treatment that applies to the gain on employer securities purchased in a qualified plan, when the distributed securities are sold . When the
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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Break In Service
Definition Calendar year, plan-year or other plan-designated 12-consecutive-month period, during which a participant fails to work the number of hours required to ensure continuation of
What is a contingent beneficiary? Find out here!
Definition The party that the retirement account owner has identified on the beneficiary form that will inherit the retirement assets remaining in the retirement account
What is a beneficiary IRA?
Definition Also referred to as ‘Inherited IRA’. An IRA that is established for the non-spouse beneficiary of the IRA owner, or qualified plan , 403(b)
Generic Beneficiary Designation Form
Definition Document that is used by the retirement account owner to identify the party ( beneficiary) that the retirement account owner wants to inherit assets
Basis
Definition Amounts representing nontaxable portion of a balance in a retirement account. Also referred to as after-tax amounts Basis comes from the sources which includes
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
403(b) Plan
Definition Also referred to as a tax sheltered annuity (TSA), is a retirement plan established by a nonprofit- tax-exempt organization as described under IRC §
401(k) Plan
Definition A qualified retirement plan established by an employer (business) for its employees. Under a 401(k) plan, eligible employees may defer a portion of their
Substantially Equal Periodic Payment (SEPP) / 72(t) Payments
Definition A series of distributions from a qualified plan, 403(b) arrangement, or IRA, that are made in equal installment payments, over the life expectancy of
