Substantial Owner Benefit Limitation
Definition of "Substantial owner benefit limitation"
Restriction on the benefit that owners and other highly compensated individuals may receive from a qualified pension or other employee benefits. The U.S. Tax Code requires that benefits under a qualified plan, and some other benefits, do not unduly favor a business firm's top hierarchy. The tax reform act of 1986 provides a uniform definition of "highly compensated" as an employee who either owned more than 5% interest in the business, received more than $75,000 in compensation, received more than $50,000 in compensation and was in the top 20% of employees as ranked by salary, or was an officer and received compensation greater than 150% of Section 415 defined contribution dollar amount.
Popular Insurance Terms
Insurance marketed through advertising in such media as newspapers, magazines, television, and radio. The mail is used to collect the application and distribute the policy. An insurance ...
Theory that the probability that two independent events will occur is equal to the probability that one independent event will occur times the probability that a second independent event ...
Failure to act with the legally required degree of care for others, resulting in harm to them. ...
Quantitative measurement of the total costs (losses, risk control costs, risk financing costs, and administration costs) associated with the risk management function, as compared to a ...
Arrangement whereby an insurance company agrees to pay specified health care service vendors a predetermined sum for providing such services to the covered individuals. ...
Coverage for motorized vehicles, each of which requires separate policies for property damage and liability exposures. Motorized vehicles are not covered under a homeowners insurance policy ...
Exception in general liability policies for all expenses associated with product recall. In recent years, there have been increasing instances of federal recalls. In addition, there have ...
Annuity modified joint life and survivorship annuity under which the income payments are reduced to one-half or two-thirds of the initial income amounts upon the death of the first ...
Annuity that guarantees that a specific sum of money will be paid in the future, usually as monthly income, to an annuitant. For example, a $1000-a-month income benefit will be paid as long ...
Have a question or comment?
We're here to help.