This is a Glossary of Qualified Plan Terms You new to the 401(k) world? You need to brush up on your qualified plan terms? You simply interested in learning a bit about all the terms involved with 401(k)s and other qualified plans? If so, this article is for you. Otherwise, move on. It could put...
Category: Qualified Plans
Cash Balance Plans Can Make You Rich! But What are They?
There are two general types of pension plans — defined benefit plans and defined contribution plans. In general, defined benefit plans provide a specific benefit at retirement for each eligible employee, while defined contribution plans specify the amount of contributions to be made by the employer toward an employee’s retirement account. In a defined contribution plan, the...
An Entrepreneur with ZERO Employees? Yes, to a Big Boy 401(k).
Ever wonder if an entrepreneur with no employees can start a 401(k) — just like the “Big Boys?” Meaning, do you have to employees to start a retirement plan? Yes, an entrepreneur or small business person with no employees can, in fact, have a 401(k) plan just like Boeing’s plan, Google’s plan, or Microsoft’s plan. The difference,...