Terms ERISA
Vested
Noncontributory plan
Contributory plan
Defined-contribution plan
Defined-benefit plan
Qualified plan
Profit-sharing plan
Cash-balance plan
ESOP
Description
A-A law that establishes parameters for employee eligibility, waiting periods, and vesting in
employer-sponsored plans.
B-A plan that meets specified criteria established by the IRS.
C-A plan in which both employees and employers may make contributions,
D-When employees take full possession of their employer's contributions to their plan accounts
E-A completely employer-funded plan that many large companies are changing to due to much lower administrative expenses.
F-Funded by employers, contributions are discretionary and primarily depend on how well the company performs each year,
G-A plan in which only employers make contributions.
H-Also known as a pension, this type of plan provides lifetime monthly payments to
retirees.
I-Employers contribute company stock to employees as tax-deductible gifts and put the stock in trust for them.
J-A plan that specifies the contribution employees and, in some cases, employers make.