Amendment
Definition The act of making updates or changes to a plan’s provisions, features and/or benefits. Some amendments are required by law, whereas others are done
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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Alternate Payee
Definition Any spouse, former spouse, child or other dependent of a plan participant who is recognized by a domestic relations order (DRO) as having a
Age 59 ½
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
After-tax contributions
Definition Contributions made to a participant’s retirement account from assets that have already been subject to income tax. For Traditional IRAs, these are referred to
401K
What is a 401K adoption agreement?
What is a 401K adoption agreement? 401k adoption agreement is a section of a retirement plan document that allows the employer to choose the provisions
Adjusted Gross Income
Definition Adjusted gross income (AGI) is the amount that is properly reflected on the last line of page 1 of IRS Form 1040 or 1040A.
Automated Customer Account Transfer Service (ACATS)
Definition A system that facilitates the automated movement of account balances between financial institutions. Typically, the entire account balance must be moved in order for
Individual retirement arrangement (IRA)
Definition Individual retirement arrangement is an umbrella term that covers individual retirement account and individual retirement annuity. These are retirement savings vehicles established by individual
Inheritance Tax
Definition Tax imposed on the right or privilege of receiving property from a decedent’s estate. Inheritance tax is not assessed on the property, but is
Inherited IRA
Definition Also referred to as ‘Beneficiary IRA’. An IRA that is established for the non-spouse beneficiary of the IRA owner, or qualified plan , 403(b)