F.48 Qualified plan rules and options

Question 1

A retirement plan in which employees contribute a set amount, often with employer matching, and future benefits depend on investment performance.

Answer 1

Defined Contribution Plan

Question 2

A tax-deferred retirement plan for employees of public schools, certain tax-exempt organizations, and some ministers, similar to a 401(k).

Answer 2

403(b) Plan

Question 3

A tax-deferred retirement plan available to state and local government employees and some non-profit organizations, with no early withdrawal penalty before age 59½.

Answer 3

457 Plan

Question 4

Contributions made by an an employer to an employee’s retirement plan based on the employee’s own contributions, typically following a specific formula.

Answer 4

Employer Matching Contribution

Question 5

The timeline over which an employee gains full ownership of employer contributions to a retirement plan.

Answer 5

Vesting Schedule

Question 6

The minimum amount a retiree must withdraw annually from qualified retirement accounts starting at a specified age, per IRS rules.

Answer 6

Required Minimum Distribution

Question 7

The process of moving retirement funds from one qualified plan to another (e.g., 401(k) to an IRA) without incurring immediate taxes or penalties.

Answer 7

Rollover

Question 8

A retirement plan allowing employers to make discretionary contributions to employees’ retirement accounts based on company profits.

Answer 8

Profit-Sharing Plan