Declining years (nonrecalcualtion)
Definition Method of determining life expectancy used to calculate post-death distributions, where once the life expectancy is determined in the determination year, 1 is subtracted
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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Death benefit exclusion
Definition Death benefits that can be excluded from income. The beneficiary of a deceased employee (or former employee), who died before August 21, 1996, may
Death benefit
Definition Benefits received by the beneficiary of a deceased: participant, insurance policy owner, annuity owner nonqualified deferred compensation plan participant etc upon the participant’s/owner’s death
Date of Acquisition
Definition As it relates to a first time home buyer, is the date on which a binding contract to acquire the principal residence, or the
Conversion (Roth IRA)
Definition The converting of assets from a Traditional, SEP or SIMPLE IRA to a Roth IRA. Roth conversions can be accomplished in the following ways:
Custodial Account
Definition Brokerage account established to hold assets under a retirement plan or ESA. When establishing a retirement account, the account may be a trust account
Coverdell Education Savings Account (CESA). Also know as Education IRA and Education Savings Account (ESA)
Definition These accounts are no longer called Education IRAs. Under S. 1190, the name was changed to Coverdell Education Savings Account (CESA) also called Education
Contribution
Definition Amounts added to a retirement account, usually as a result of the participant deferring receipt of compensation in order to have the amount added
Consolidated Omnibus Budget Reconciliation Act ( COBRA )
Definition Law which amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide temporary continuation
Conduit IRA
Definition Also called a Rollover IRA. A Traditional IRA that holds only assets there were distributed from a qualified plan , 403(b) account or 457(b)