ACTIVE PARTICIPANT STATUS
An active-participant status is an indication of the participation of an individual in a retirement plan sponsored by the employer. The qualified plans are:
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Qualified plans such as 401(k) plans, target benefit plans or money purchase pension, defined benefit plans, and profit sharing plans.
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Simple IRAs
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SEP IRAs
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Qualified annuity plans
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403(b) plans
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A plan founded for its employees by an instrumentality or agency of the United States or any of its subdivisions, by a political subdivision or state of the United States, and even by the United States itself.
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Employee Funded Pension Trusts (established prior to June 25,1959)
POPULAR TERMS
Affirmative Covenant
A kind of contract or promise that requires a party to conduct some action. For example, a bond covenant which provides that the issuer must delive ...
Pure Risk
A risk where loss is the only potential outcome; there is no positive result. A pure risk is related to events that are out of control of the risk- ...
Efficiency
Performance level describing a process which uses the lowest amount of inputs to come up with the greatest amount of inputs. It is relative to usin ...
Tax Free
Goods and/or financial products that are not taxable. Having the tax free status allows an entity to save money and encourages additional spending ...
Reprice
A situation that is most often allowed for company executives or high-level employees. It permits them to trade in their options that out of the mo ...
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