Chapter 3 Vocab

Question 1

A tax-deferred investment and savings plan that acts as a personal pension fund for employees

Answer 1

401 K

Question 2

A retirement plan similar to 401k, but one which is offered by non-profit organizations

Answer 2

403 B

Question 3

Deferred compensation plan available to employees of many government entities

Answer 3

457 Plan

Question 4

College savings plan on tax-deferred basis

Answer 4

529 Plan

Question 5

One who is responsible for an account listed in someone else’s name

Answer 5

Custodian

Question 6

Movement of tax-deferred retirement plan money from one qualified plan or custodian to another

Answer 6

Direct transfer

Question 7

A tax- deferred trust account created by the US government to assist families in funding educational expenses for ppl 18 years or younger

Answer 7

ESA

Question 8

IRA

Answer 8

Individual retirement account

Question 9

Paying for college ahead of time by accumulating units of tuition

Answer 9

Pre- paid tuition

Question 10

Movement of funds from a tax-deferred retirement plan from one qualified plan or custodian to another

Answer 10

Rollover

Question 11

An account that grows tax free

Answer 11

Roth IRA

Question 12

Retirement plan for self employed ppl

Answer 12

SEPP

Question 13

An asset that receives more favorable tax treatment than some other asset

Answer 13

Tax favored dollars

Question 14

Legislation that provides a tax effective manner of transferring property to minors without the complications of trusts or guardianship restrictions

Answer 14

UGMA

Question 15

Law similar to the UGMA that extends the definition of gifts to include real estate, paintings, royalties and patents

Answer 15

UTMA