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Chapter 20_RF - relevant to these plans Following a section...

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Chapter 20 S ECTION 401( K ) P LAN READING FOCUS: A. Have a basic understanding of 401(k) plans REVIEW: This chapter discusses Section 401(k) or cash or deferred arrangement (CODA) plans. Brief mention is made of SIMPLE and safe harbor 401(k) plans, but the primary focus is on traditional plans. After an initial identification section, the chapter moves into a discussion of when use of such a plan is indicated, along with potential advantages and disadvantages. The design features section focuses on salary reductions, employer contributions, and plan distributions. The next section identifies tax implications. In addition to a referral back to Chapter 10, the How to Install a Plan section includes some focus on elective deferrals and salary reduction forms, and a few other issues
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Unformatted text preview: relevant to these plans. Following a section of references for learning more, the chapter closes with an extended question and answer section. FEATURED TOPIC: Section 401(k) plans, including contributions and plan distributions CFP® CERTIFICATION EXAMINATION TOPIC: Topic 61: Types of retirement plans B. Types and basic provisions of qualified plans 1. Defined contribution c. Profit sharing 1) 401(k) plan KEY WORDS: Section 401(k) plan, cash or deferred arrangement (CODA), salary reduction, matching contribution, discretionary matching contribution, pure discretionary contribution, actual deferral percentage (ADP), hardship, SIMPLE 401(k), safe harbor 401(k), Roth 401(k)...
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