A retirement plan that combines some of the characteristics of a 401(k) plan with those of a defined benefit (DB) plan. Funds can be voluntarily contributed to the DB(k) plan just as they can with a 401(k) plan, with the employer retaining the option to match the funds up to a certain percentage. Upon retirement, the employer will also pay the employee a small percentage of his or her salary, which is similar to a traditional pension. The DB(k) plan was included in the Pension Protection Act of 2006. The DB(k) plan was designed to provide businesses with a way to attract employees, since many investors worry that their entire savings could be wiped out in a down market. Retaining the pension characteristic means that the retiree will still have a source of income, regardless of the performance of the 401(k) portion of the plan.
1. An account created at a bank, brokerage firm or mutual fund company that is managed by an adult for a minor that is under the age of 18 to 21 (depending on state legislation). 2. A retirement account managed for eligible employees by a custodian. 1. In a custodial account, approval from the custodian is required in order for a minor to transact securities. The custodian of these types of accounts is usually a parent or guardian of the minor. 2. The investments managed within a custodial account are limited to mutual funds and other similar products offered by regulated investment companies.
A technique that enables a person to receive a gift that is not eligible for a gift-tax exclusion, and change it into one that is eligible. Crummey power is often applied to contributions in an irrevocable trust; often in respect to life insurance. In order for the Crummey power to work, the gift must be stipulated as being part of the trust when it is drafted and the gift cannot exceed $12,000 annually per beneficiary of the trust (among other requirements). This is how Crummey power works: When a donor makes a contribution to the irrevocable trust, the beneficiaries must be notified that the funds can be withdrawn within a certain time period (no less than 30 days). When the beneficiary does not withdraw the funds, they go back to the trust and are then subject to the annual gift tax exclusion. The donor will usually inform the beneficiary of his or her intentions to use the Crummey power, so that the beneficiary declines to withdraw the gift when given the opportunity.Crummey power is named after Clifford Crummey who wanted to build a trust fund for his sons, and be able to reap the yearly tax exemption benefits as well.
An annuity in which the first payment is paid at a later date in the future. A delayed annuity, similar to a regular annuity consists of a stream of cash flows provided to the annuity holder. However, cash payments do not begin to flow immediately, instead following a predetermined future schedule. Watch: What is An Annuity If Steve was to receive five yearly payments of $100 at the end of each year starting this year, then this payout would be considered an ordinary annuity. On the other hand, if the five payments are deferred for 10 years, this instrument is classified as a delayed annuity. In order to determine the net present value of the delayed annuity, the payments must be discounted to year zero (the present).
A thinning of an employee base that takes place when a company's benefits plan has insufficient funds to cover the expenses associated with paying the employees' earned benefits. This frequently occurs when a company can no longer stay in business, or when the business attempts to avoid or delay closing. once a plan is terminated, all activities, such as benefit accruals and vesting, end. A company may chooses to terminate a benefits plan for many reasons: if it has declared bankruptcy, if it has filed a petition to reorganize in bankruptcy and it is determined that the company cannot reorganize with the plan intact, if it demonstrates that it cannot remain in business unless the pension plan is terminated or if it can demonstrate that the costs associated with the pension plan have become unreasonable due to a decline in the number of participating employees. The Pension Benefit Guaranty Corporation (PBGC), established by The Employee Retirement Income Security Act of 1974 (ERISA), protects the pensions of private defined benefit pension plans, and pays benefits to pensioners of failed pension plans.
1. A document explaining the rules of an IRA in plain, nontechnical language. This must be provided to the IRA owner at least seven days before the IRA is established, or it can be provided to the IRA owner at the time the IRA is being established providing the IRA owner is given seven days within which he/she may revoke the IRA.2. A document outlining the specific terms and conditions of a loan, including the interest rate of the loan, any loan fees, the amount borrowed, insurance, prepayment rights and the responsibilities of the borrower. 1. The disclosure statement must include information relating to IRA fees, IRA distribution rules and penalties, eligibility requirements for establishing an IRA and the general rules of an IRA.2. This document must be sent by the lender to the borrower before the loan proceeds are disbursed.
A trust that has embedded provisions (usually contained in a will) which allow a surviving spouse to put specific assets under the trust by disclaiming ownership of a portion of the estate. Disclaimed property interests are transferred to the trust, without being taxed.Provisions can be written into the trust that provide for regular payouts from the trust to support survivors. Surviving minor children can also be provided for, as long as the surviving spouse elects to disclaim inherited assets, passing them on to the trust. For example, if an individual passes away and leaves her husband an estate, he may disclaim some interests in the estate, which are then passed directly to the trust as though it were the original beneficiary. Minor children could then benefit from regular payouts from the trust.Disclaimer trusts require that the survivor act according to the wishes of the deceased, and disclaim ownership of some of the assets bequeathed to him by the deceased. In the above example, if the surviving spouse does not disclaim ownership of any portion of the estate, then the deceased's wish to transfer assets to the surviving minor children goes unfulfilled. Because of the legal complexities involved, these trusts should only be set up by qualified professionals.
A transfer of assets from one type of tax-deferred retirement plan or account to another. Direct transfers are not considered to be distributions and are therefore not taxable as income or subject to any penalties for early distribution. This type of transfer is now usually done electronically, without a check being cut from one custodian to another. Direct transfers can be effected by the account or plan owner by filling out the requisite paperwork. Most transfers take several days to complete, although this process is now generally faster in the electronic and computer age than in the past. Direct rollovers from qualified plans are a form of direct transfer.
登录
工商服务
危机公关
金融律师
app开发
财税服务
金融牌照
网站建设
知识产权
企业征信
审计评估