Glossary
401(k)
A qualified retirement plan that allows employees to make pre-tax contributions,
governed by Section 401(k) of the Internal Revenue Code.
ERISA
The Employee Retirement Income Security Act, a set of laws that protect
the participants and beneficiaries of retirement and welfare plans.
Fiduciary
Under ERISA section 3(21), a fiduciary is a person or legal entity who:
- exercises discretionary authority or control in management
of the plan or exercises any authority or control over management or
disposition of the plan assets
- renders investment advice for a compensation (direct
or indirect) for any assets of the plan, or has any authority or responsibility
to do so
- has discretionary authority or discretionary responsibility
in the administration of the plan
Qualified Professional
Financial advisor, broker or professional who assists you with your retirement
plan choices and investment options.
Proprietary investments
Investment options manufactured by an affiliated company;
SIMPLE IRA
An Individual Retirement Account that can be used to make pre-tax contributions
for business owners and their employees.
Third-party administrator
Professional who provides plan design and administrative services for
retirement plans.
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