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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HSA Funding Distribution (HFD)
Definition A qualified HSA funding distribution (QHFD) is a distribution from a traditional IRA or a Roth IRA , that is made to the individual’s Health
Separate 1099-R for ESOP Dividends
New Reporting Requirement for the reporting of dividends on employer securities that are distributed from an ESOP: The IRS issued Announcement 2008-56, which states that
R.O.B.S. A Retirement Nest Egg to fund a Start-up? That’s Risky Business!
by Denise Appleby CISP, CRC, CRPS, CRSP, APA – www.linkedin.com/in/deniseappleby/ Sometimes it is challenging for self-employed individuals to obtain loans from lending institutions, and
KSOP
Definition An employer sponsored plan, which combines the features and benefits of an ESOP and a 401(k) plan. Employer contributions to a KSOP are usually
In-service Withdrawal
Definition Withdrawal permitted when the participant does not meet one of the traditional triggering events. Under a 401(k) plan, an in-service withdrawal of elective contributions
Hardship Withdrawal or Hardship Distribution
Definition Withdrawal from a participant’s Retirement Savings account as a result of the participant experiencing a financial hardship. Hardship must be defined in the plan document,
Forward Averaging
Definition Also referred to as Income Averaging Tax treatment where lump-sum distributions from qualified plans are treated as if they were distributed averagely over a
Forfeiture
Definition Portion of employer contribution in which the participant is not vested, and is forfeited (returned or given up) when an employee separates from service
