What is a beneficiary IRA?
Definition Also referred to as ‘Inherited IRA’. An IRA that is established for the non-spouse beneficiary of the IRA owner, or qualified plan , 403(b)
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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Generic Beneficiary Designation Form
Definition Document that is used by the retirement account owner to identify the party ( beneficiary) that the retirement account owner wants to inherit assets
Basis
Definition Amounts representing nontaxable portion of a balance in a retirement account. Also referred to as after-tax amounts Basis comes from the sources which includes
IRA
Get to know your 457 Plan: Rollover, Eligibility and Withdrawal Options
What is a 457 Plan? The 457 plan, also referred to as a deferred compensation plan, is a retirement plan established by a state or
Substantially Equal Periodic Payment (SEPP) / 72(t) Payments
Definition A series of distributions from a qualified plan, 403(b) arrangement, or IRA, that are made in equal installment payments, over the life expectancy of
60-day Rollover Rule
Definition Rule under which a participant is required to rollover distribution amounts received in order for the amount to be treated as nontaxable. Distribution amounts
59 and a Half (Age) / 59 1/2
Definition 6-months after the 59th anniversary of an individual’s date-of-birth. The significance of age 59 ½ is that distributions taken as of that age are
5-percent owner
Definition An individual who owns more than 5-percent of a company. 5-percent ownership affects qualified plans in several ways. These include: A 5-percent owner is
# Numbers
2-Year Rule ( SIMPLE IRA) 5-percent owner 59 1/2 ( age 59 1/2) 60-day rollover rule 70 1/2 (Age 70 1/2) 72(t) Payment 401(k) Plan
Average Benefit Test
Definition Test used to determine whether minimum coverage requirements are satisfied under a qualified plan (qualified retirement plan) A plan satisfies the average benefit test