Substantial Owner Benefit Limitation
Restriction on the benefit that owners and other highly compensated individuals may receive from a qualified pension or other employee benefits. The U.S. Tax Code requires that benefits under a qualified plan, and some other benefits, do not unduly favor a business firm's top hierarchy. The tax reform act of 1986 provides a uniform definition of "highly compensated" as an employee who either owned more than 5% interest in the business, received more than $75,000 in compensation, received more than $50,000 in compensation and was in the top 20% of employees as ranked by salary, or was an officer and received compensation greater than 150% of Section 415 defined contribution dollar amount.
Popular Insurance Terms
Reckless action without regard to life, limb, and/or property; for example, driving 100 miles per hour on a road or highway. ...
Law that established rules and regulations to govern private pension plans, including vesting requirements, funding mechanisms, and general plan design and descriptions. For example, three ...
Rejection by an insurance company of an application for a policy. ...
Life insurance policy clause. If at the end of the grace period the premium due has not been paid, a policy loan will automatically be made from the policy's cash value to pay the premium. ...
Combination property, liability, and business interruption policy. It is usually written to cover expenses of small and medium size businesses resulting from damage or destruction of ...
Fund that concentrates primarily on short-term government securities, certificates of deposit with maturities less than one year, and high-quality interest-bearing corporate debt. The fund ...
Coverage that pays a fixed dollar amount of interest at regular intervals. ...
Nominal interest rate minus the rate of inflation. ...
Pooling of assets of two or more pension funds under common portfolio management. ...
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