Qualified Individual Plans
Qualified Sml Employer Plans
Qualified Lrge Employer Plans
Non-Qualified Plans
Taxes
100
Withdrawals are generally subject to a tax penalty if they are made before the age of 59 ½.
What is a Traditional Individual Retirement Account (IRA)?
100
Contributions are treated as part of a profit-sharing plan.
What are contributions to a SEP-IRA Plan?
100
The payments a person receives upon retirement, usually under pre-determined legal and/or contractual terms.
What is a pension plan?
100
May discriminate in favor of highly compensated employees
What is a non-qualified retirement plan?
100
This person is not required to report any amount of death benefit proceeds for federal income tax purposes.
Who is the beneficiary of a life insurance?
200
Anyone with earned income who has not attained age 70 1/2 can have one of these.
What is an IRA (Individual Retirement Account)?
200
This plan may be used by a sole proprietor—only if the employees of the business are included.
What is a Keogh (Unincorporated) Pension Plan?
200
Qualified plans where a portion of the company's profit is contributed to the plan and shared with the employees.
What are nprofit-sharing plans?
200
A retirement plan that does not qualify for special tax treatment by the IRS.
What is a non-qualified plan?
200
Regarding group Term Life insurance this becomes taxable when an employee's coverage exceeds $50,000.
What is a portion of the employer-paid premiums?
300
IRA contributions are made in this form to be tax deductible.
What is cash?
300
An employer with no more than 100 employees is eligible to establish this type of plan for his or her employees.
What is a SIMPLE* IRA? * Savings Incentive Match Plan for Employees
300
Participants may choose to either receive taxable cash compensation or have the money contributed into plan, referred to as cash and deferred arrangement plans (CODA).
What is a 401(k) plan?
300
A way of purchasing permanent life insurance as a fringe benefit to key employees.
What is a Split-Dollar Plan?
300
An individual is responsible for keeping his or her own personal life insurance in force and considered a personal expense, therefore this is not tax deductible.
What are the premiums?
400
The type of IRA that grows tax free as long as the account is open for at least 5 years.
What is a Roth IRA?
400
A person must be self-employed or a partner working part or full-time who owns at least 10% of the business to participate in this plan.
What is a Keogh Retirement Plan?
400
A qualified retirement program for employees of non-profit organizations. Contributions are made through a salary reduction program
What is a 403(b) plan?
400
A written agreement between an employer and an employee where the employee voluntarily agrees to have part of their compensation withheld by the company, invested on their behalf, and given to them at some pre-specified point in the future.
What is a Deferred Compensation Plan?
400
The policyowner is not taxed on this, even though it accumulates on a tax-deferred basis.
What is the annual increase in cash value?
500
Distributions are not included in taxable income with this type of plan.
What is a Roth IRA?
500
If these general requirements are met: Employer contributions to a qualified retirement plan are considered a deductible business expense, which lowers the business' income tax. Employer contributions to a qualified plan are not currently taxable to the employee in the years the plans are contirbuted and grow tax deferred The earnings in the plan accumulate tax deferred. The plan becomes this.
What is a tax qualified Plan?
500
This type of plan may be arranged as: 1. Pure salary reduction plan; 2. Bonus plan; or 3. Thrift plan.
What is a 401(k) plan?
500
This type of plan rewards senior level employees of the company with additional compensation based on performance.
What is an Executive Bonus Plan?
500
These are not taxable to the policyowner and an individual cannot receive tax deduction for interest paid on it either.
What is a policy loan?
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