Qualified Plan
Pension meeting requirements of IRAC sec. 401(a) eligible for tax favored treatment.
Defined benefit plan
Plan in which benefits do not depend on how plan investments have fared financially.
Tax-deferred
Tax paid at a later date possibly in a lower tax bracket.
403b
Similar to a 401 for educators
Rollover IRA
Account into which employee may deposit distribution of another retirement account to avoid tax penalty.
Roth IRA
Plan in which contributions are not tax deferred but funds may grow tax free
Keogh
A tax differed qualified retirement plan for self employed individuals and unincorporated businesses
Defined Contribution Plan
Plan in which retirement benefits depend on how plan investments have fared
ESOP
Employee Stock Ownership plan
401k
Plan that allows employee to put part of earnings into tax-deferred investment account
Annuity
Contract, usually sold by an insurance company to provide regular payments
Actuarial Calculations
Use of statistics to determine probability, like life span.
IRA
Individual Retirement Account
ERISA
Employee Retirement Income Security Act
PBGC
Pension Benefit Guaranty Corporation
Vested
Legal Right to current or possession, for funds an employer puts into a fund
Fiduciary
Acting on behalf of another in a relationship with special obligations
QDRO
Qualified Domestic Relations Order, for divorced persons, the ex-spouse may be entitled to share in retirement benefits.
