The individual(s) or institution appointed by the employer who is/are responsible for the administration of investments held under the plan. These responsibilities include, but are not necessarily limited to, distributions from the plan; receiving contributions under the terms of the plan and employing agents, attorneys or other professionals as the trustee(s) may deem necessary or [...]
A plan defined number of hours of service an employee must perform for the employer during the plan year in order to be credited with a year of service. Year of service is used for different aspects of plan administration such as eligibility for plan participation, vesting calculation and eligibility for employer contribution(s). The actual [...]
A schedule defined in the Plan document and the SPD based on years of service with the employer. Each year of service is credited with a vesting percent, but in no event can an employee be made to wait more than 6 years before they are considered 100% vested in employer contributions. An employee is [...]
The ownership percentage of a participant’s account balance attributable to employer contributions (e.g. profit sharing and/or matching contributions). Typically these sources of money utilize an identical vesting schedule, but they may be different for each source.
A contribution made by an employee, attributable to a distribution from active participation in a prior qualified retirement plan or a conduit/rollover IRA. The plan document and the SPD will specify whether or not rollover contributions are permitted and whether eligibility requirements for plan participation must be satisfied before a rollover contribution will be accepted. [...]
Also know as a discretionary contribution, this type of contribution is made by the employer and allocated to participants pursuant to a definite predetermined formula. This type of employer contribution may or may not be made from plan year to plan year, as determined solely by the employer, with or without regards to profit. This [...]
An amount contributed by the employer to a participant’s account based on a formula related to a participant’s salary deferral contributions. This formula may be fixed or discretionary. If discretionary, the matching contribution formula may vary from plan year to plan year. This type of employer contribution is typically subject to a vesting schedule.
The amount or percentage of a participant’s wages, salary, fees or earned income that has been elected for contribution to the plan and identified by an executed enrollment form. This amount is deducted each payroll period and is not subject to Federal Tax and certain State’s taxes but is subject to Social Security Taxes. These [...]
A date specified in the plan document in which a participant has met certain qualifications for either a distribution of their account balance or other plan requirements and which is based on the participant’s age, years of service with the employer or both. The plan’s definition of normal retirement may not necessarily be the same [...]