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
interconnection of computers that contain pages classified into groups called web sites that can be accessed over the internet. The only requirement for visiting a web site is to have ...
Ratio of excess losses to premium income. Excess losses are those that a reinsurer is responsible for if its coverage is in effect during the period under consideration. The premium income ...
Health insurance contract sold to an individual to provide coverage for medical expenses. Contrast with group health insurance. ...
Payment of an employee's employee benefit insurance plan benefits to the employee's individual retirement account ( IRA) or to another plan maintained by the employer. ...
Decrease in value of property as the result of technological advancement and/or changing social mores. This factor is used to measure the amount of depreciation in determining the actual ...
Independent federal government organization authorized by the employee retirement income security act of 1974 (erisa) to administer the pension plan termination insurance program. Its ...
One of four SEC divisions that administers the procedure through which public companies must disclose all relevant material in order that a potential investor might make an informed ...
Ordinary life insurance that generates a first year cash value from the payment of the first year premium. Using this cash value, loans could be made to finance premiums due in the future, ...
Minimum rate of return, in life insurance, guaranteed to a policyowner in calculating benefits for a life insurance policy. It is also used by an insurance company as the minimum rate of ...
Have a question or comment?
We're here to help.