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
Eligible rollover distribution that is paid directly from an employee's employee benefit insurance plan to the employee's individual retirement account (IRA) or to another plan maintained ...
Insurance coverage purchased on the same item from two or more insurance companies. ...
Same as term Unallocated Funding Instrument: pension funding agreement under which funds paid into a retirement plan are not currently allocated to purchase retirement benefits. The funds ...
Method of investing that staggers the maturities of a group of bonds. As a bond matures, the investor can reinvest the proceeds in either short- or long-term bonds depending on the interest ...
Rate applied when two or more separate buildings are insured under one policy, and/or when two or more separate contents are insured under one policy. ...
Portion of a life insurance policy cash value after the deduction of all the policyowner's indebtedness. ...
Physical handing of an insurance policy to the insured. Sales training emphasizes the importance of delivery of a policy by the agent. This develops a caring attitude on the part of the ...
Conducting of maritime suits involving ocean marine insurance policy claims before an admiralty court. ...
Type of excess of loss reinsurance in which the insurance company (cedent) cedes its known loss revenues to its reinsurer. ...
Have a question or comment?
We're here to help.