Distribution
Definition Amount paid from a retirement plan as a reportable transaction. A distribution can be processed as a direct rollover or paid to the participant.
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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Disclosure statement
Definition A document provided to participants, explaining certain provisions in non-technical terms. For IRAs, each participant must be provided with a disclosure statement , which
Disclaimer ( Qualified Disclaimer )
Definition A written document, wherein the beneficiary irrevocably refuses to accept assets they would otherwise inherit. The disclaimer must meet the following requirements in order
Direct conversion
Definition A Roth Conversion that occurs directly between the delivering retirement account and receiving Roth IRA. The delivering account can be either of the following:
Determination letter
Definition A letter issued by the IRS to a plan sponsor, indicating whether the IRS has determined that a retirement plan is qualified. Form 5300
Designated Roth Contribution
Definition An elective deferral contribution to a section 401(k) or 403(b) plan that satisfies the following requirements: Has been designated irrevocably by a participant as
Designated Roth Account
Definition A designated Roth account (DRA) can be a DRA-401(k) or a DRA-403(b), commonly known as Roth 401(k) and Roth 403(b). DRAs became effective for
Designated financial institution (DFI)
Definition A financial institution ( such as a bank , insured credit union, savings and loan, or IRS approved non-bank custodians-such as a brokerage firm)
Deemed IRA
Definition Account established under a qualified plan, 403(a), 403(b) or governmental 457(b) plans to receive Roth IRA or Traditional IRA contributions . Contributions to a
Deductible employee contribution (DEC)
Definition Any qualified voluntary employee contribution (i.e. any amount contributed on behalf of any individual to a plan described in Code § 501 (c)(18)) ,