Individual retirement annuity (IRAnnuity)
Definition Individual retirement annuity (IRAnnuity )is the annuity-contract version of an individual retirement arrangement, and is issued by an insurance company. There are several versions
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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Individual retirement account (IRAccount)
Definition Individual retirement account (IRAccount )is the account version of an individual retirement arrangement, and is issued by a bank, credit union, brokerage firm, savings
IRA
Indirect rollover
Definition A two part transaction, where Part-1 is a distribution and Part 2 is a rollover contribution. The distribution is typically paid to the participant.
Indirect Conversion
Definition A Roth conversion, where the IRA owner takes a distribution from the retirement account that is a Traditional, SEP or SIMPLE IRA (non-Roth IRA)
Income Averaging
Definition Also referred to as Forward Averaging Tax treatment where lump-sum distributions from qualified plans are treated as if they were distributed averagely over a
Job Creation and Workers Assistance Act of 2002 (JCWAA)
Definition Act signed into law on March 9, 2002, effecting technical changes to EGTRRA. Provisions effected by JCWAA include the following: A qualified employer plan
401(k) stock ownership plan (KSOP)
Definition An employer sponsored plan, which combines the features and benefits of an ESOP and a 401(k) plan. Employer contributions to a KSOP are usually
Keogh Plan
Definition A qualified plan established by a self-employed individual. The term can be used to refer to defined benefit plans, money purchase and other pension
Lump Sum Distribution
Definition Distribution or payment, within a single tax year, of a plan participant’s entire balance from all of the employer’s qualified pension plan, profit-sharing plan,
Loan
Definition Amount borrowed by a participant from his or her vested balance under a qualified plan , 403(b) or 457(b) plan. Loans are limited to