Employee Pension Plans 101

Employee Pension Plans 101 Employee Pension Plans 101 Table of Contents Types of Pension Plans......................................................................................................................... 3 Defined Benefit Plan......................................................................................................................... 3 Defined Contribution Plan ............................................................................................................... 3 Traditional Individual Retirement Account (IRA). ........................................................................ 4 Roth Individual Retirement Account. .............................................................................................. 4 Simplified Employee Pension Individual Retirement Account. .................................................... 4 Savings Incentive Match Plan for Employees (Simple) Individual Retirement Account. ........... 4 Qualified Plans. ................................................................................................................................. 4 403(b) Accounts. ............................................................................................................................... 4 401(k) Plan ........................................................................................................................................ 4 Glossary of Terms................................................................................................................................. 4 Benefit Accrual ................................................................................................................................. 5 Cash Balance Plan ............................................................................................................................ 5 Defined Benefit Plan......................................................................................................................... 5 Defined Contribution Plan ............................................................................................................... 5 Employee Retirement Income Security Act of 1974 (ERISA) ...................................................... 5 Employee Stock Ownership Plan (ESOP) ...................................................................................... 5 Individual Retirement Account (IRA) ............................................................................................. 6 Money Purchase Plan ....................................................................................................................... 6 Multiemployer Plan .......................................................................................................................... 6 Plan Administrator ............................................................................................................................ 6 Plan Document .................................................................................................................................. 6 Plan Fiduciary ................................................................................................................................... 6 Plan Trustee ....................................................................................................................................... 6 Plan Year ........................................................................................................................................... 7 Profit-Sharing Plan ........................................................................................................................... 7 E mpl o yee P ens i on P l ans 1 01 Page # 1 Rollover ............................................................................................................................................. 7 Safe Harbor 401(k) ........................................................................................................................... 7 Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) ........................... 7 Simplified Employee Pension Plan (SEP) ...................................................................................... 7 Summary Plan Description............................................................................................................... 8 Vested Benefits ................................................................................................................................. 8 Years of Service ................................................................................................................................ 8 Basic Structure of a Pensi