Excess nondeductible employer contribution
Definition Contributions to a qualified plan, 403(a) annuity plan, or a SEP IRA in excess of the deductible limit. SEP IRA: An employer may deduct
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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Excess distribution
Definition The aggregate amount of the retirement distributions with respect to any individual during any calendar year to the extent such amount exceeds the greater
Excess contribution
Definition Contribution in excess of the statutory limit: For IRAs, contributions are limited to the lesser of 100% of compensation or the dollar limit in
Excess aggregate contribution
Definition With respect to any plan year, the excess of — the aggregate amount of the matching contributions and employee contributions (and any qualified nonelective
Excess accumulation
Definition Any amount by which the RMD due for the year is short. Example: If the RMD for the year is $10,000, and only $8,000
Excess accumulation estate tax
Definition 15 % tax that used to apply to excess distributions, which are defined as the aggregate amount of the retirement distributions with respect to
Excise Tax
Definition Also referred to by retirement plan practitioners as ‘penalty’. An excise tax is a penalty tax assessed by the IRS on certain transactions or
ERTA (Economic Recovery Tax Act of 1981)
Definition ERTA changed the laws to allow participants covered by employer-sponsored plans to make participant contributions to IRAs. Prior to ERTA, only individuals not covered
Employer matching contribution (or matching contribution)
Definition Contributions made by the employer in addition to & contingent upon salary-deferral contributions made by the participant. Matching contributions can be made to 401(k)
Eligible rollover distribution (ERD)
Definition A distribution that is eligible to be rolled over to an eligible retirement plan. Eligible rollover distributions include a participant’s balance in a qualified