Paired Plan
Definition of "Paired plan"
Plan that combines a profit sharing plan with a money purchase plan. It permits the participant to maximize the flexible part of the combination (profit sharing plan) after satisfying the requirements for the annual contributions to the money purchase plan. Under this combination plan, the maximum annual contribution is 25% of the earned income subject to a maximum of $30,000. For example, if the participant desired to contribute annually the 25% maximum amount of earned income, the participant could commit to making a 15% annual contribution to the money purchase plan and then contribute the remainder to the profit sharing plan if business conditions permit. The only mandate contribution each year would be the 15% of earned income to the money purchase plan.
Popular Insurance Terms
Basic requirements of an employee benefit insurance plan such as minimum age and years of service with an employer. ...
Same as term Deductible: amount of loss that insured pays in a claim; includes the following types: Absolute dollar amount. Amount the insured must pay before the company will pay, up to ...
Model state law of the NAIC that stipulates that the purchaser (debtor) of a credit life insurance (creditor life insurance) policy must be provided a descriptive policy; the policy must ...
Section of a life insurance policy setting the procedure for revoking a current beneficiary and designating a successor beneficiary. Insurers require written notice of a beneficiary change, ...
Method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the reinsurer pays the amount of the claim above that limit up to a specific ...
Forgery insurance covering securities issues such as stocks and bonds. They protect the issuer of securities against forgery of the securities. ...
Fidelity bond that covers a business if employees in listed positions commit dishonest acts, such as stealing money. ...
Limitation imposed on insurance companies by state law. States oversee the insurance industry, being responsible for making certain that the rates are fair, reasonable, and adequate, and ...
Retirement income benefit of a survivor (or survivors) of an insured individual, according to a particular formula. For example, if a retired male worker dies, all or a portion of his ...
Have a question or comment?
We're here to help.