DSB NHT Plans, Provisions, Transactions Flashcards
Separation from Service (T404)
A separation from service is when a participant is no longer employed by the plan sponsor.
Great GASB/SOMI Plan
A third-party administrator for retirement plans. GASB/SOMI plans can be identified by the broker code is populated with an N (PM706)
Third Party Agreement
A company that provides operational services such as day-to-day account administration functions and employee benefits management under contract to another company.
Top Hat Plans
Top-hat plans are unfunded plans maintained by a for-profit or nonprofit employer primarily to provide deferred compensation for management or highly compensated employees. Top-hat plans are exempt from the participation, funding, vesting, accrual and fiduciary provisions of ERISA and are subject to a few other requirements, such as reporting and disclosure rules.
Transfer (Internal and External)
A non-taxable movement of assets without a distributable event.
Unusual Activity
Unusual Activity review is used to verify that the distribution request was legitimately made by the participant.
Vesting Schedule
Vesting is a portion of ownership in the money that has been given to you. Contributions to your account by employers are subject to vesting. A vesting schedule determines the amount of money available for withdrawal after a specific period of time worked for the plan sponsor.
Voluntary Tax Deferred Annuity
A tax-deferred annuity plan is a type of retirement plan designed to complement your employer’s base retirement plan. Also referred to as a voluntary savings plan, a tax-sheltered annuity, or simply as a 403(b).
