Chapter 3 Vocab Flashcards Preview

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Flashcards in Chapter 3 Vocab Deck (15)
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1
Q

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

A

401 K

2
Q

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

A

403 B

3
Q

Deferred compensation plan available to employees of many government entities

A

457 Plan

4
Q

College savings plan on tax-deferred basis

A

529 Plan

5
Q

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

A

Custodian

6
Q

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

A

Direct transfer

7
Q

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

A

ESA

8
Q

IRA

A

Individual retirement account

9
Q

Paying for college ahead of time by accumulating units of tuition

A

Pre- paid tuition

10
Q

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

A

Rollover

11
Q

An account that grows tax free

A

Roth IRA

12
Q

Retirement plan for self employed ppl

A

SEPP

13
Q

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

A

Tax favored dollars

14
Q

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

A

UGMA

15
Q

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

A

UTMA