Definition of "Paired plan"

Josephine Carpenter real estate agent

Written by

Josephine Carpenterelite badge icon

RE/MAX Elite

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

State plans that provide health insurance coverage for those who are unable to purchase medical insurance. Coverage is provided by a specially formed nonprofit-making pool comprised of all ...

Maximum sum of money that the insurance company will pay, during the time interval that the product liability insurance coverage is in effect, for all product liability-related claims ...

Standard property/casualty insurance premium set by a state rating bureau. States have responsibility for regulating insurers and making certain that rates are reasonable. To this end, ...

Account established by the insurance company specifically for beneficiaries of a life insurance policy where the beneficiary has the choice of leaving the death benefit on deposit in the ...

Case where an insurance company is placed by the state court under the control of the state insurance department. Claims are paid in the order filed until the insurance company's ability to ...

Health plans established by associations of hospitals and physicians to provide hospital service and care, and medical and surgical care. ...

Nominal interest rate minus the rate of inflation. ...

Statistical approach stating that if a series of samples is taken from a stable population, the distribution of the means (averages) of these samples will form a normal distribution whose ...

Apparent agreement that is not a valid contract. ...

Popular Insurance Questions