Chapter 11

Question 1

Qualified Plan

Answer 1

Pension meeting requirements of IRAC sec. 401(a) eligible for tax favored treatment.

Question 2

Defined benefit plan

Answer 2

Plan in which benefits do not depend on how plan investments have fared financially.

Question 3

Tax-deferred

Answer 3

Tax paid at a later date possibly in a lower tax bracket.

Question 4

403b

Answer 4

Similar to a 401 for educators

Question 5

Rollover IRA

Answer 5

Account into which employee may deposit distribution of another retirement account to avoid tax penalty.

Question 6

Roth IRA

Answer 6

Plan in which contributions are not tax deferred but funds may grow tax free

Question 7

Keogh

Answer 7

A tax differed qualified retirement plan for self employed individuals and unincorporated businesses

Question 8

Defined Contribution Plan

Answer 8

Plan in which retirement benefits depend on how plan investments have fared

Question 9

ESOP

Answer 9

Employee Stock Ownership plan

Question 10

401k

Answer 10

Plan that allows employee to put part of earnings into tax-deferred investment account

Question 11

Annuity

Answer 11

Contract, usually sold by an insurance company to provide regular payments

Question 12

Actuarial Calculations

Answer 12

Use of statistics to determine probability, like life span.

Question 13

IRA

Answer 13

Individual Retirement Account

Question 14

ERISA

Answer 14

Employee Retirement Income Security Act

Question 15

PBGC

Answer 15

Pension Benefit Guaranty Corporation

Question 16

Vested

Answer 16

Legal Right to current or possession, for funds an employer puts into a fund

Question 17

Fiduciary

Answer 17

Acting on behalf of another in a relationship with special obligations

Question 18

QDRO

Answer 18

Qualified Domestic Relations Order, for divorced persons, the ex-spouse may be entitled to share in retirement benefits.