Compensation
Definition Income used for purposes of determining amount of contributions made to an employer sponsored plan or IRA. For common-law employees, compensation is usually salary,
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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Community property state and marital property state
Definition State where assets earned during a marriage are deemed to be the joint property of the married couple Community property states are Arizona, California,
Common-law Employee
Definition Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will
Commingling
Definition Mixing of retirement plan assets that may be required to be maintained separately for certain reasons. For instance, adding regular IRA contributions to a
Certificate of deposit (CD)
Definition An investment product , where investors typically agree to receive a fixed rate of return on the amount invested. Amounts are usually invested for
Cashout ( Involuntary Cashout)
Definition An involuntary distribution of a separating participant’s vested account balance of $5,000 or less, under a qualified plan, 403(b) or 457(b) plan. This involuntary
Cash Balance Plan
Definition A defined benefit plan that includes (a) career average’ features of a defined benefit plan, which uses a participant’s earnings history to determine the
Carryback Contribution
Definition Contribution made to a Roth IRA, Traditional IRA or education savings account, from January 1 through to April 15 of the current year ,
Capital Gains Treatment
Definition Tax treatment that applies to the gain on employer securities purchased in a qualified plan, when the distributed securities are sold . When the
What is a contingent beneficiary? Find out here!
Definition The party that the retirement account owner has identified on the beneficiary form that will inherit the retirement assets remaining in the retirement account