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Qualified Retirement Plan |
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Definition of Qualified Retirement PlanQualified Retirement PlanA retirement plan designed to observe all of the requirements
Related Terms:Nonqualified Retirement PlanA pension plan that does not follow ERISA and Defined Contribution PlanA qualified retirement plan under which the employer Rollover IRAAn IRA that an individual sets up for the express purpose of receiving Baker PlanA plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor Corporate financial planningFinancial planning conducted by a firm that encompasses preparation of both Defined benefit planA pension plan in which the sponsor agrees to make specified dollar payments to Defined contribution planA pension plan in which the sponsor is responsible only for making specified Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Employee stock ownership plan (ESOP)A company contributes to a trust fund that buys stock on behalf of Financial planA financial blueprint for the financial future of a firm. Financial planningThe process of evaluating the investing and financing options available to a firm. It Floor planningArrangement used to finance inventory. A finance company buys the inventory, which is then Insured plansDefined benefit pension plans that are guaranteed by life insurance products. Related: noninsured plans Long-term financial planFinancial plan covering two or more years of future operations. Materials requirement planningComputer-based systems that plan backward from the production schedule Money purchase planA defined benefit contribution plan in which the participant contributes some part and Non-insured plansDefined benefit pension plans that are not guaranteed by life insurance products. Related: Overfunded pension planA pension plan that has a positive surplus (i.e., assets exceed liabilities). Pension planA fund that is established for the payment of retirement benefits. Plan for reorganizationA plan for reorganizing a firm during the Chapter 11 bankruptcy process. Plan sponsorsThe entities that establish pension plans, including private business entities acting for their Planned amortization class CMO1) One class of CMO that carries the most stable cash flows and the Planned capital expenditure programCapital expenditure program as outlined in the corporate financial plan. Planned financing programProgram of short-term and long-term financing as outlined in the corporate Planning horizonThe length of time a model projects into the future. Short-term financial planA financial plan that covers the coming fiscal year. Tax-deferred retirement plansEmployer-sponsored and other plans that allow contributions and earnings to Underfunded pension planA pension plan that has a negative surplus (i.e., liabilities exceed assets). Withdrawal planThe ability to establish automatic periodic mutual fund redemptions and have proceeds Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. property, plant, and equipmentThis label is generally used in financial cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Employee Stock Ownership Plan (ESOP)a profit-sharing compensation program in which investments are made in enterprise resource planning (ERP) systema packaged software program that allows a company to manufacturing resource planning (MRP II)a fully integrated materials requirement planning system that involves materials requirements planning (MRP)a computerbased information system that simulates the ordering and operational plana formulation of the details of implementing planningthe process of creating the goals and objectives for strategic planningthe process of developing a statement of tactical planningthe process of determining the specific Manufacturing resource planning (MRP II)An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of Material requirements planning (MRP)A computer-driven production methodology Pension planA formal agreement between an entity and its employees, whereby the Property, plant, and equipmentThis item is comprised of all types of fixed assets planning horizonTime horizon for a financial plan. Plant and EquipmentBuildings and machines that firms use to produce output. 401k PlanA retirement plan set up by an employer, into which employees can 403b PlanA retirement plan similar to a 401k plan, except that it is designed Cafeteria PlanA flexible benefits plan authorized under the Internal Revenue Defined Benefit PlanA pension plan that pays out a predetermined dollar Educational Assistance PlanA plan that an employer creates on behalf of its Employee Retirement Income Security Act of 1974 (ERISA)A federal Act that sets minimum operational and funding standards for employee benefit Employee Stock Ownership Plan (ESOP)A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer. Hourly Rate PlanA method for calculating wages for hourly employees that involves Individual Retirement AccountA personal savings account into which a defined Individual Retirement AnnuityAn IRA comprised of an annuity that is managed Nonqualified Stock OptionA stock option not given any favorable tax treatment Piece Rate PlanA wage calculation method based on the number of units of production Profit Sharing PlanA retirement plan generally funded by a percentage of company Savings Incentive Match Plan for Employees (SIMPLE)An IRA set up by an employer with no other retirement plan and employing fewer than 100 employees, Target Benefit PlanA defined benefit plan under which the employer makes Aggregate planningA budgeting process using summary-level information to Enterprise resource planning systemA computer system used to manage all company Interplant transferThe movement of inventory from one company location to Manufacturing resource planningAn integrated, computerized system for planning Material requirements planningA computerized system used to calculate material Unplanned receiptA stock receipt for which no order was placed or for which an Insured Retirement PlanThis is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today." Registered Pension PlanCommonly referred to as an RPP this is a tax sheltered employee group plan approved by Federal and Provincial governments allowing employees to have deductions made directly from their wages by their employer with a resulting reduction of income taxes at source. These plans are easy to implement but difficult to dissolve should the group have a change of heart. Employer contributions are usually a percentage of the employee's salary, typically from 3% to 5%, with a maximum of the lessor of 20% or $3,500 per annum. The employee has the same right of contribution. Vesting is generally set at 2 years, which means that the employee has right of ownership of both his/her and his/her employers contributions to the plan after 2 years. It also means that all contributions are locked in after 2 years and cannot be cashed in for use by the employee in a low income year. Should the employee change jobs, these funds can only be transferred to the RPP of a new employer or the funds can be transferred to an individual RRSP (or any number of RRSPs) but in either scenario, the funds are locked in and cannot be accessed until at least age 60. The only choices available to access locked in RPP funds after age 60 are the conversion to a Life Income Fund or a Unisex Annuity. Registered Retirement Savings Plan (Canada)Commonly referred to as an RRSP, this is a tax sheltered and tax deferred savings plan recognized by the Federal and Provincial tax authorities, whereby deposits are fully tax deductable in the year of deposit and fully taxable in the year of receipt. The ability to defer taxes on RRSP earnings allows one to save much faster than is ordinarily possible. The new rules which apply to RRSP's are that the holder of such a plan must convert it into income by the end of the year in which the holder turns age 69. The choices for conversion are to simply cash it in an pay full tax in the year of receipt, convert it to a RRIF and take a varying stream of income, paying tax on the amount received annually until the income is exhausted, or converting it into an annuity with guaranteed payments for a chosen number of years, again paying tax each year on moneys received. Registered Retirement Income Fund (Canada)Commonly referred to as a RRIF, this is one of the options available to RRSP holders to convert their tax sheltered savings into taxable income. Spousal Registered Retirement Savings PlanThis is an RRSP owned by the spouse of the person contributing to it. The contributor can direct up to 100% of eligible RRSP deposits into a spousal RRSP each and every year. Contributing to a spouses RRSP reduces the amount one can contribute to one's own RRSP, however, if the spouse is a lower income earner, it is an excellent way in which to split income for lower taxation in retirement years. qualified investments (Canada)qualified investments is the term used for investments that can be held in an RSP. These investments generally include: RRSP (Registered Retirement Savings Plan) (Canada)A savings plan registered with Revenue Canada, which allows you to set aside a portion of your earned income now for use in the future. When you contribute to your RRSP, you are eligible to claim a tax deduction. However, cashing RRSPs at a later date will result in the payment of tax. Regular Investment Plan (RIP)A plan under which you may make regular deposits of the same amount to your Mutual Funds account once a month, once every 2 weeks, or once a week. You can also make regular deposits up to four times a month on any dates you choose. systematic withdrawal planplans offered by mutual fund companies that allow unitholders to receive payment from their investment at regular intervals. Canada Pension Plan (CPP)A plan that provides retirement and long term disability income benefits to residents of Canadian provinces (excluding Quebec). Estate PlanningAn insurance program designed to provide funds for insured's dependents upon death of the insured, and to also conserve, as much as possible, the personal assets that the insured wants to bequeath to heirs. Quebec Pension PlanA plan that primarily provides retirement and long-term disability income benefits for residents of Quebec. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |