Chapter 3 Flashcards
Established minimum standards to protect the interests of participants and beneficiaries an employer sponsored retirement plans offered by the private sector
ERISA
What type of plans do not need ERISA standards?
Non-qualified retirement plans
______ Is anyone who has control over any plans management or assets including anyone who gives investment advice about the plan
Fiduciary
Eligibility standards for full-time employees Of a qualified plan include:
Full-time status minimum of 1000 hours per year, employed for 12 months or more, at least 21 years old
A document that describes in writing a summary of the investment plan and what is to be expected from that plan
Investment policy statement (IPS)
Qualify distributions are withdraws that occur after the employee has attained age of
59 1/2
Who is responsible for funding a defined benefit plan?
The employer
A type of defined contribution plan in which the employer contributes a portion of the firms profits each year
Profit sharing plan
A type of defined contribution plan offered to employees of private and public companies
401 k
Retirement plan established by corporations partnerships are sole proprietors self-employed and are designed to be a simple and cost efficient way for smaller employers to meet their employees retirement needs. Employers are allowed to make annual contributions up to 25% of the employees salary. Employees age 21 or older with at least $600 and your income three of the last five years are eligible
SEP PLAN
Simplified Employee Pension
A plan that can be adopted by small businesses that employ 100 or fewer employees and do not have another qualified plan available. Employee must have earned $5000 in compensation during any two years before the current calendar year and is expected to earn at least $5000 for current calendar year. These requirements are the maximum and can be reduced by the employer.
SIMPLE
Savings incentive match plans for employees
Plan referred to as tax sheltered annuity
403B plan
Retirement plan available for eligible employees a public school systems qualified 501C3 nonprofit organizations including religious colleges and universities hospitals and museums contributions are not tax deductible to the employer
403 b plan
Qualified plan subject to ERIS a regulations are used to purchase stock in the employers company and contribute that stock to the employees qualified retirement plan
ESOP
Employee stock ownership plans
A non-qualified retirement plan and which employees differ a portion of their income to a specified later date. These plans can discriminate.
Deferred compensation plans
