Qualified plans Flashcards
What is a simplfied employee pension (SEP)?
suited for small employer or the self employed.
what is a hr-10 or keogh plan?
make it possible for the self employed person to be covered. Under keogh plan you have to own at least 10% of the business.
When do retirements plans have to be withdrawn?
after 59.5 and before 72
What is the penalty for early withdrawl?
it is a 10% penalty.
What is a profit sharing plan?
portion of company’s profits are added to the plan.
what is a 401k plan?
allows employees to take reduction on salary by differing amount to the plan.
What is a simple plan?
available to small business that employ no more than 100 employees
what is a 403b tax sheltered annuity?
available to non profits.
What is rollover?
withdraw of money from one qualified plan to another.
what is vesting?
the right of a particpant in a retirement plan to retain all or part of the benefits.
