Cliff Vesting is a type of vesting schedule in which employees receive full ownership of certain benefits or assets all at once, at a specific time.
Pension plans where the benefits are calculated based on factors like salary history and duration of employment. Plans that promise a specified monthly benefit at retirement, often based on salary and years of service.
A comprehensive explanation of Direct Transfer, detailing its definition, types, special considerations, examples, historical context, applicability, comparisons, related terms, and frequently asked questions.
Employer Contributions refer to the amounts paid by an employer towards the employee benefit plans, encompassing various forms of insurance, retirement funds, and other employee welfare programs.
Employer matching contributions are additional funds contributed by an employer to an employee's retirement plan, designed to match the amount the employee saves.
Understanding what 'Funded' means in various financial contexts, its importance, and practical examples.
Understanding Highly Compensated Employees (HCE) is crucial for compliance with retirement plan regulations. This entry covers HCE definition, historical context, and the importance in retirement plans.
Immediate vesting refers to a benefit plan provision where employees gain 100% ownership of employer-contributed funds immediately upon participation.
Understanding Non-Highly Compensated Employees (NHCEs) in the context of retirement plans, their roles, benefits, and implications for workplace equity.
A comprehensive guide to understanding Non-Highly Compensated Employees (NHCEs), their role in retirement plans, and how they differ from Highly Compensated Employees (HCEs).
Comprehensive overview of IRS-required nondiscrimination tests for retirement plans, including ADP, ACP, and Top-Heavy tests.
Other Post-Employment Benefits (OPEB) encompass a range of benefits provided to retired employees besides pensions. These benefits often include health care, life insurance, and other forms of deferred compensation.
Understanding the Qualified Domestic Relations Judgment (QDRJ), its historical context, key events, types, and legal implications.
An in-depth look at Safe Harbor 401(k) plans, which automatically meet Nondiscrimination Testing (NDT) requirements when specific conditions are fulfilled.
Vested benefits refer to the portion of a pension benefit that an employee is entitled to receive, even if they leave the employer before retirement.
A comprehensive definition and explanation of Accumulated Benefit Obligation (ABO) in pension accounting, with illustrations, historical context, comparisons to projected benefit obligation (PBO), and FAQs.
An in-depth look at Distress Termination in relation to the termination of a retirement plan.
A comprehensive look at Hardship Distribution, a provision under Section 401(k) plans allowing for withdrawals in case of immediate and heavy financial needs.
An in-depth explanation of Past Service Credit, its importance, calculation, examples, and related terms in the context of retirement plans.
SIMPLE IRAs are a type of retirement plan that qualifying small employers with no more than 100 employees can offer to their employees. This plan allows self-employed individuals to contribute as well, facilitating tax-deferred retirement savings.
An overview of Single Life Distributions, including their definition, taxation, and applicability from retirement plans.
A comprehensive guide to understanding the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests, designed to ensure that 401(k) retirement plans do not disproportionately favor higher-paid employees.
Explore comprehensive insights into Employee Stock Ownership Plans (ESOPs), including their definition, operational mechanisms, and key advantages.
A comprehensive guide to IRS Form 1099-R, detailing its purpose for reporting distributions from annuities, profit-sharing plans, retirement plans, or insurance contracts, and who is required to file it.
A comprehensive guide to graded vesting, including its definition, how it works, and its implications for retirement plans and stock options.
A comprehensive guide to understanding in-service withdrawals, their definitions, rules, tax implications, and potential penalties.
This entry explores the concept of nonelective contributions, their definition, benefits to employees, implications, and how they fit into qualified retirement plans.
A comprehensive understanding of profit-sharing plans, including their definitions, mechanisms, examples, benefits, and comparison with other employee incentive programs.
A comprehensive guide to vesting, including its definition, types, applications in retirement plans and employee benefits, and how it impacts legal rights to payments and assets.
