Section 401 (k) Plan Switchbacks (ksops)
Device that allows plan participants in employee stock ownership plan (ESOP) trust to reinvest the dividends into their section 401 (k) plan. Under the switchback approach, plan participants are permitted to select whether they wish to reinvest their dividends paid on the company's stock into the KSOP on a tax-deferred basis or take the dividends in cash and be subject to ordinary income tax. If the plan participant elects to reinvest the dividends into the KSOP, the participant's contribution to the Section 401 (k) is reduced by the amount of the dividend. The KSOP concept allows dividends to be retained in the retirement plan and permits the plan participant to increase the amount of his or her contribution into the plan by the amount of dividends reinvested.
Popular Insurance Terms
Life insurance: Bonds most state regulations permit life insurance company investments in debentures, mortgage bonds, and blue chip corporate bonds. Stocks(a) preferred stock investment ...
Payment by the insurance company to the insured for the actual expenses incurred by the insured, such as medical expenses. ...
Life insurance that stays in effect for only a specified, limited period. If an insured dies within that period, the beneficiary receives the death payments. If the insured survives, the ...
Broad excess protection for liability over the level of primary coverage or self insurance. Umbrella policies are written for both business and personal liability. For example, a personal ...
Securement of funds from outside sources such as by borrowing or by attracting equity control. Use of leverage to improve the profitability of a business. Achievement of an investment ...
Actual price paid for property when it was acquired. The original cost might apply to a piece of jewelry, to a piece of equipment, or to a building. For insurance purposes, original cost is ...
Ratio of the insurance company's investment in common stocks dividend to its adjusted surplus account. This ratio shows how vulnerable the company's surplus is to the stock market ...
1957 federal law setting a limit on the liability of operators of nuclear facilities. The law, an amendment to the Atomic Energy Act of 1954, authorized establishment of private insurance ...
Professional designation earned after the successful completion of four national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as insurance ...
Have a question or comment?
We're here to help.