Term
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Definition
| Payment is made in a single sum to the participant or beneficiary. |
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Term
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Definition
| Payment that is guaranteed for one lifetime or two lifetimes. |
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Term
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Definition
| "Distribution is a perodic payment, such as a monthly or annual payment that is made for a specified period of time." |
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Term
| Qualified Joint and Survivor Annunity (QJSA) |
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Definition
| Provides a life annuity to the participant and a survivor annuity for the spouses life following the pariticpants death. (Plan is required to have unless exemption applies) |
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Term
| Qualified Preretirement Survivor Annuity (QPSA) |
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Definition
| Required death benefit which must provide to the participants surviving spouse unless the QPSA is properly waived. |
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Term
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Definition
| At least two years / Plan may allow the employee to withdraw funds that have been accumulated in the plan for a specified period - at least two years. |
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Term
| Severance from Emplpyment |
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Definition
| Employee no longer works for the employer that maintains the 401)k) plan due to a voluntary or involuntary termination of employment. |
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Term
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Definition
| Must be defined in objective terms - must meet two requirements 1. it must be made on account of an immediate and heavy finanical need. 2. must be necessary to satisfy the financial need. |
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Term
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Definition
| Individual who is named as a beneficiary under the plan and has an unconditional right to all or a portion of the participants account balance upon the participants dealth. |
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Term
| Alternative Defined Contribution Plan |
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Definition
| Any defined contribution plan that exists at anytime during the period beginning on the date of the 401(k) plan's termination and ending 12 months after distribution of all 401(k) plan's assets. |
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Term
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Definition
| "Distribution made at the employee's election of all contributions made under the auto enroll on behalf of the employee, adjusted for earnings." |
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Term
| Required Minium Distribution (RMD) |
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Definition
| Amount the participant or beneficiary must remove form the plan in a given year under the IRC 401(a)(9). |
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Term
| Required Beginning Date (RBD) |
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Definition
| The date by which a participant must commece RMD's. |
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Term
| Distribution Calendar Year |
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Definition
| A calendar year for which a minium distribution is required. |
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Term
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Definition
| "The default method for calculating minimum distibutions form a defined contribution plan including IRA, 403(b), 457(b) plans." |
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Term
| Annuity Distribution Method |
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Definition
| Annuity contract is purchased with the participant account balance to be the QJSA. Commences no later than the RBD. |
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Term
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Definition
| Calendar year preceding the distribution calendar year. |
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Term
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Definition
| Individual(s) or trust that is: - designated by the participant in a beneficiary election form. - designated by the plan as applying if a participant does not elect his or her beneificary or if the participant elects one or more beneficiaries that are neither individuals nor trust. |
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Term
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Definition
| "Maybe a spouse, or former spouse, or child, or other dependents of the participant who is ""recognized by a domestic relations order as having a right to receive all or a portion of the benefits payable under the plan." |
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Term
| Qualified Domestic Relations Order (QDRO) |
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Definition
| Provides payment of all or a portion of the participant benefits to an alternate payee and satisifies the requirements of IRC 414(p) and ERISA 206(d). |
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