Remaindermen
Definition The party who will receive the remaining principal of a trust, when the principal beneficiary dies . For example: A’s trust is designed to
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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Controlled group
Definition Businesses that share common ownership. Depending on the percentage of ownership, companies under a controlled group ( common control) must be treated as one company
Reconversion
Definition A conversion of an amount that was previously converted and subsequently recharacterized. An IRA owner who converts an amount to a Roth IRA during
Regulation
Definition A regulation is issued by the Internal Revenue Service and Treasury Department to provide guidance for new legislation or to address issues that arise
Recharacterization
Definition A recharacterization can be either of the following: Changing a regular IRA contribution from (a) a Roth IRA contribution to a Traditional IRA contribution
Summary plan description
Definition A document that must be provided to participants of qualified pans; providing explanations of their rights, benefits, and responsibilities under the plan. SPDs must
Summary Description
Definition Document that must be provided each year, by a SIMPLE IRA trustee/custodian (financial institution), to the employer, containing the following information: Definition Document that
Stretch IRA
(The term Stretch IRA® is copyrighted by Wealth Advisory Group. Used with Permission) Definition Also referred to as “Extended IRA’, or Multi-Generational IRA . Term
Straight Life Annuity
Definition Annuity payment method used under an annual benefit payment from a defined benefit plan. Under this option, an annuity income stream is paid to
Spousal IRA Contribution
Definition An IRA contribution is made by a working spouse on behalf of the other spouse who has little or no income, generally income less
