Custodian
Definition The definition of custodian depends on the responsibility of the financial institution. To make the necessary distinction between the different roles they play for
IRA
Individual retirement accounts include traditional IRAs, Roth IRAs, SIMPLE IRAs and SEP IRAs. Traditional and Roth IRAs are funded by the individual owner. SEP IRAs are funded by employers. SIMPLE IRAs are generally funded by employers and employees. Special tax rules apply to these accounts.
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60 day Period (for Rollovers)
Definition The ‘60th day following the day on which the participant receives the distribution’. Therefore, to determine which date is the 60th day, start counting
Qualified Rollover Contribution
Definition A qualified rollover contribution is a Roth IRA conversion. The following transactions are qualified rollover contributions: 1.A rollover contribution from a traditional IRA, SEP
Rollover Eligible
Definition Another name for eligible rollover distribution (ERD), which is used in reference to a distribution that is eligible to be rolled over to an
Computation period
Definition The period beginning immediately prior to the time that the contribution or conversion that is being returned or recharacterized was made to the IRA
Adjusted closing balance
Definition The adjusted closing balance is the fair market value of the assets at the end of the computation period plus: Any distributions from the
Adjusted opening balance
Definition For purposes of computing the NIA (net income attributable) on a recharacterization or return of excess IRA contribution. The fair market value of the IRA
Partial Recharacterization
Definition A recharacterization of less than the account balance (from which the contribution or conversion is being recharacterized), or less than the total (traditional or
Split Tax Refund for Direct Deposits of IRA Contributions
Definition A direct deposit of a tax-refund into more than one accounts, where one (or more) of the accounts is an IRA. Provision- The Split
Employee Stock Ownership Plan (ESOP)
Definition A defined contribution plan for which the primary investments are employer stocks (stocks of the employer that sponsors the plan). In order to be