Unit 13 Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Reverse churning

A

Member firm moves low trading activity clients into accounts where they are charged a fixed fee that is higher than what they would have paid in commissions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

ERISA

A

Employee Retirement Income Security Act of 1974
Applies to private sector/corporate retirement plans and certain union plans
Does not apply to public plans like those for government workers
Does not apply to non-qualified plans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Payroll Deduction Plan

A

Allows employees to authorize their employer to deduct a specified amount for retirement savings from their paychecks, after taxes are paid. Assume NQ. (does not include 401k)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Salary Reduction Plan

A

401(k), qualified

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

IRA

A

Individual Retirement Account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

EGTRRA

A

Economic Growth and Tax Relief Reconciliation Act of 2001. Catch-up contributions for older IRA owners (traditional or Roth)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

ESPP

A

Employee stock purchase program

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

CIP

A

Customer identification program
USA Patriot act of 2001
Verify the identity of any new customer, maintain records of information used to verify identity, determine if person on list of known or suspected terrorists (OFAC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

OFAC

A

Office of foreign assets control
Maintains a list of known or suspected terrorists or terrorist organizations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Vesting

A

Defines when an employer contribution to a plan becomes the employees money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

HDHP

A

High-deductible health plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

HSA

A

Health savings account
Different than FSA, where money cannot be invested; use it or lose it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

SECURE

A

Setting Every Community Up for Retirement Enhancement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Cliff vesting

A

A process that allows employees to receive full benefits from their company’s retirement plan or stock option plan on a specific date, rather than gradually over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly