Chap 14 Flashcards
A plan-profit sharing, money purchase, keogh, or 401 k that provides an individual account for each participant; individual account plan
Defined-contribution plan
A plan under which employees can defer current taxation on portion of their salary; also called a salary-reduction plan
401 (k) plan
An employees right to at least a portion of the benefits accrued under an employer pension plan even if the employee leaves the company before retiring
Vesting
A plan that specifies the benefits the employee will receive at the normal retirement age
Defined-benefit plan
A special account in which the employee sets aside a portion of his or her income; taxes are not paid on the principal or interest until money is withdrawn from the account
IRA
A plan in which tax-deductible contributions fund the retirement of self-employed people and their employees; H.R.10 plan or self-employees retirement plan.
Keogh Plan
Everything one owns
Estate
A definite plan for the administration and disposition of ones property during ones lifetime and at ones death
Estate planning
The legal declaration of a persons mind as to the disposition of his or her property after death
Will
Without a valid will
Intestate
A legal arrangement through which ones assets are held by a trustee
Trust
The legal procedure of proving a valid or invalid will
Probate
Someone willing and able to perform the tasks involved in carrying out your will
Executor
A person who assumes responsibility for providing children with personal care and managing the deceased’s estate for them
Guardian
A document that modifies provisions in an existing will.
Codicil
