A

Account Balance
Amount of funds held in a qualified retirement plan on behalf of an employee eligible for the plan.

Adoption Agreement
The plan document executed by the Employer and the Trustee(s) adopting the plan.

Age
Actual attained age for the plan year during which the plan is adopted and each subsequent plan year.

Annuitant
Any person to whom an annuity payments are being made under the terms of the plan.

Amortization
The reduction of a debt through periodic payment.

B

Beneficiary
Any individual(s) or legal entity designated to receive any benefit under the plan upon death of a participant.

C

Compensation
Compensation means all of each participant's wages.

Company Match
An employer contribution made to a qualified retirement plan that is given to participants who make an employee contribution. An employer may choose to 'match' your contribution and contribute to the plan on your behalf. For example, for every $1 you contribute, your employer may add $.50, up to the first 6% of pay that you contribute. Under this scenerio, if you earn $25,000 a year and contribute 6% of your pay to the 401(k) plan ($1,500 annually), your employer would add $750 to your account.

D

Determination Date
The last day of the plan year or subsequent plan year.

Determination Letter
A document issued by the IRS regarding the qualified status of a retirement plan. If a retirement plan is qualified, monies invested in the plan remain tax-deferred until they are distributed. A determination letter may be issued on the plan's initial qualification when the plan is first established, or when the plan is ammended or terminated.

Distribution
Payment from a qualified plan made to a participant or participant's beneficiary.

E

Early Retirement Age
The earliest date on which, under the plan, a participant could elect to receive retirement benefits. (Note: this may vary in each plan)

Elective Deferrals
Any employer contributions made to the plan at the election of a participant, in lieu of cash compensation, including contributions made pursuant to a salary reduction agreement or other deferral mechanism.

Entry Date
The date as designated in the adoption agreement on which an employee may become an active participant in the plan after meeting the eligibility requirements specified in the adoption agreement.

ERISA
The Employee Retirement Income Security Act of 1974, as ammended.

F

Fiduciary
Generally, a fiduciary is a person who exercises discretionary control over the assets of another party and has a responsibility to that party. Fiduciaries of qualified retirement plans are sometimes called ERISA fiduciaries. ERISA sets forth strict standards that govern the responsibilities of a fiduciary and the determination of who is a fiduciary.

Forfeiture
The portion of a participant's account that is not vested.

H

Hour of service
Each hour for which an employee is paid, or entitled to payment.

L

Lump Sum Distribution
A single distribution which represents the total amount due to an individual from their retirement plan.

M

Matching Contribution
An employer contribution made to a qualified retirement plan that is given to participants who make an employee contribution. An employer may choose to 'match' your contribution and contribute to the plan on your behalf. For example, for every $1 you contribute, your employer may add $.50, up to the first 6% of pay that you contribute. Under this scenerio, if you earn $25,000 a year and contribute 6% of your pay to the 401(k) plan ($1,500 annually), your employer would add $750 to your account.

N

Normal Retirement Age (NRA)
The age at which you can take a retirement distribution from your retirement plan. NRA can vary from plan to plan.

P

Participant
An employee who has met the eligibility requirements and is therefore covered under the qualified retirement plan sponsored by his or her employer. Once an employee becomes a participant in a 401(k) plan, he or she may elect to make salary deferrals.

Plan Document
The written document setting forth the terms of the employee-sponsored qualified retirement plan.

Plan Year
The period of time as selected in the adoption agreement.

Q

QDRO
A Qualified Domestic Relations Order (QDRO) is a court order that assigns all or a portion of the benefits which would otherwise be payable to a participant under a qualified retirement plan to another person. If the court order does not meet all of the requirements for a QDRO, a plan is prohibited from paying plan benefits to anyone other than the plan participant.

Qualified Plan
Any plan which meets the requirements of Section 401(a) of the Code.

R

Rollover
Moving money from one tax-qualified plan to another qualified ot individual retirement account in order to prevent immediate tax liability.

S

Salary Deferral
Voluntary contributions deducted from an employee's compensation on a pre-tax basis and invested in a qualified retirement plan.

Service
Length of employment with the employer maintaining the plan.

T

Trustee
The person(s) or corporation having trust powrs designated as Trustee in the adoption agreement and any designated successor Trustee.

V

Valuation Date
The date elected by the employer as of which account balances or accrued benefits are valued.

Vested Account Balance
Amount of funds held in a qualified retirement plan that a participant can receive as a distribution when he or she terminates employment with the employer who sponsors the plan. A participant is always fully vested in his or her salary deferrals and the earnings on those contributions. The vesting for employer contributions and earnings on employer contributions is based on the years of service a participant works for the employer.

W

Withdrawal
Payment from a qualified retirement plan to a participant who is usually still employed by the employer who sponsors the plan.