401k - Study guides, Class notes & Summaries

401k - ANSWER Plan A plan which allows employees to make tax-deferred contributions to retirement savings accounts. Many employers match these contributions at a specified ratio to help retirement savings build faster. Beneficiary - ANSWER The person or persons who are designated to receive the amount of the death benefit if the policyholder dies. Cafeteria Plan - ANSWER Tax-qualified flexible benefit plans that are offered by participating employers. It was created by the internal Revenue...

Verification Form I-9 must be completed by applicants providing proof of identity and employment eligibility within ______ of employment. -Answer 3 days What type of business is the easiest to establish and allows the owner to determine how profits are used although they are personally liable for all debt and assets? -Answer Sole Proprietorship A ______is a joint co-owner partnership established to specifically increase bonding and bidding capacities and profits. -Answer Genera...

401K -:- A qualified plan established by employers to which eligibl e employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis. Advertising -:- To call public attention to, especially by pointing out desirable qualiti...

H&R Block Budget Challenge and Chapter 2 Test Already Passed Net Pay Amount of income left after taxes and deductions have been taken out. Gross Pay the total amount of an employee's earnings before deductions are taken out Deductible Amount you must pay before you begin receiving any benefits from your insurance company Prorate When you are charged only the amount you will use. For example, when moving into an apartment, you would not pay the full month's rent if you are moving...

A financial profile should include an assessment of the client's: correct answers Current expenditures debt obligations tax status income sources balance sheet containing the client's assets, including: cash, cds, savings, real estate, value and composition of securities, pension and retirement accounts, cash value in life insurance policies, personal items such as jewelry and car and liabilities including current debt (credit card, tax, long term debt, auto, mortgage, loans again...

Why is the Payroll Calculator helpful in determining the effect of a 401K contribution on net pay? 401(k) contributions reduce the federal tax owed. What minimum balance must be maintained in the emergency fund in order to earn the trophy? $500 How can a participant earn the Perfect Pay trophy? Pay all of their bills in full and on time. What happens if a participant overpays a vendor and needs the money to pay a different bill? The money will be refunded overnight if the participant reque...

Deemed substantiation - Employers give employees per diem to spend- so employees do not need proof of their expenses. MUST USE THE LESSOR OF: the per diem rate by company or federal per diem rate What is an accountable plan? What are the two requirements of employees? - Expenses incurred by employees are reimbursed by employer- so employees report no expenses. Requirements: 1- must return any excess reimbursement 2- must substantiate expenses (maintain records of) What is the 'catch up...

401K Plan - In the United States, a type of savings plan that allows employees to make contributions on a pre tax basis. (12) absolute assignment - An assignment of a life insurance policy under which the policy owner transfers all of his policy ownership rights to the assignee. Contrast with collateral assignment. (9) accelerated death benefit - A supplemental life insurance policy benefit which provides that a policy owner may elect to receive all or part of the policy's death benef...

Broad view of Employee Benefits (Mod 1.1) - correct answer Considers Employee Benefits to be virtually any form of compensation other than direct wages paid to Employees (Ex: WC, Unemployment, State DI, SS, Vacation, Holidays, 401K/Retirement, Employer share of Medical, Severance Pay, Child Care, etc..) Narrow view of Employee Benefits (Mod 1.1) - correct answer Any type of plan sponsored or initiated by Employees and Employers and engaged in providing benefits that result from the employ...

Verification Form I-9 must be completed by applicants providing proof of identity and employment eligibility within ______ of employment. - ans 3 days What type of business is the easiest to establish and allows the owner to determine how profits are used although they are personally liable for all debt and assets? - ans Sole Proprietorship A ______is a joint co-owner partnership established to specifically increase bonding and bidding capacities and profits. - ans General Proprie...