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
Group whole life insurance policy designed to reduce an employee's exposure to income tax on the value of life insurance provided by the employer. The policy separates the term element from ...
Same as term Captive Agent: representative of a single insurer or fleet of insurers who is obliged to submit business only to that company, or at the very minimum, give that company first ...
Approach advocated by the Federal Trade Commission (FTC) in its 1979 life insurance cost disclosure report. It calculates the rate of return earned by the savings element of a life ...
Situation wherein the agent's conduct causes a client or prospective insured reasonably to believe that the agent has the authority to sell an insurance policy and contract on behalf of the ...
Legislation that provides for the inclusion in the estate of the decedent of lifetime transfers that involve a retained life interest in the following manner: decedent sells or gives to ...
Federal statute that permits the self-employed a 100% tax deduction for the family health care expenses to include health insurance premiums, disability INCOME insurance premiums, and ...
Essential part of an insurance policy. It names the individual (s) covered, property and locations covered, perils covered, the time a policy goes into force, and its termination date. ...
Requirement that a retired worker can have annual earnings of no more than a stipulated amount in order to receive a full retirement income under Social Security if under age 70. There is a ...
Method of reducing an employee pension according to IRS procedures: Offset method restricted to a DEFINED BENEFIT PLAN under which a mandatory percentage of the monthly Social Security ...
Have a question or comment?
We're here to help.