Power of Attorney (POA)
Definition Legal document wherein an individual authorizes another person ( the attorney-in-fact) to act on behalf of another person, by carrying out certain transactions. 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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Plan year
Definition A 12-month period of which the operation of the plan is based. The plan year can be a calendar-year or a fiscal-year. Referring Cite
Plan agreement ( plan agreement)
Definition The document that explains the terms and conditions under which the plan must operate. For IRAs, the plan agreement is the IRA adoption agreement.
Plan administrator
Definition The person or party responsible for handling the day-to-day administrative functions of the plan. Responsibilities of the plan administrator include maintaining plan records, preparing
Periodic payment (periodic distribution)
Definition Periodic payments are made in installments at regular intervals over a period of more than 1 year. They may be paid annually, quarterly, monthly,
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
