Paired Plan
Definition of "Paired plan"
Plan that combines a profit sharing plan with a money purchase plan. It permits the participant to maximize the flexible part of the combination (profit sharing plan) after satisfying the requirements for the annual contributions to the money purchase plan. Under this combination plan, the maximum annual contribution is 25% of the earned income subject to a maximum of $30,000. For example, if the participant desired to contribute annually the 25% maximum amount of earned income, the participant could commit to making a 15% annual contribution to the money purchase plan and then contribute the remainder to the profit sharing plan if business conditions permit. The only mandate contribution each year would be the 15% of earned income to the money purchase plan.
Popular Insurance Terms
Sum that an insurance company charges a business firm to restore a property or liability insurance policy, or a bond, to its initial face value after the insurance company has paid a claim ...
Loss that is not a direct result of a peril. For example, damage to property of a business firm would be a direct loss, but the loss of business earnings because of a fire on its premises ...
Plan in which participant (employee) utilizes spending accounts to pay for health care costs not subject to reimbursement from a health insurance policy or health care provider. The ...
Funds receivable or payable that have not been paid in a timely manner, commercial credit insurance protects an insured against declines in the value of receivables due to insolvency of a ...
Additions of new entrants into an employee benefit insurance plan. ...
SCHEDULE provision of the new York insurance code and regulations under which the life insurance company must file with the Insurance Commissioner all expenses associated with selling new ...
Option under a participating life insurance policy by which the policy owner can elect to have the dividends purchase paid-up increments of permanent insurance. ...
Same as term adverse selection: process in life insurance by which an applicant who is uninsurable, or is a greater than average risk, seeks to obtain a policy from a company at a standard ...
Method by which each member of an insurance pool shares in each and every risk written by the other members of the pool. ...
Have a question or comment?
We're here to help.