Distributions are taxed when taken.

-Additional 10% penalty if

Traditional IRA distribution taken before 59.5
-Must begin taking distributions at
70.5

Contributions are taxed but distributions are

not
-Additional penalty if distribution taken in
first 5 years after account opens
Roth IRA -Ability to contribute is phased out based on
adjusted gross income
-There are no required distributions over the
lifetime of a Roth IRA

an organization-wide program that

distributes compensation based on
some established formula designed
Profit Sharing Plan around a company's profitability
-Often used in conjunction with
other plans

Type of profit sharing plan that permits

employees to contribute pre-tax dollars
-Employers make matching
401(k) plan contributions
-Some plans permit elective deferrals to
a designated Roth 401(k) account

A tax-deferred retirement
plan similar to a 401(k), but
403(b) plan utilized by tax exempt
organizations such as
hospitals or schools
 a compensation system that
Employee Stock awards employees shares of
Ownership Plan (ESOP) company stock in addition to
their regular compensation

An employer funded IRA in

which employers can
Simplified Employee
contribute greater of 25% of
Pension (SEP) compensation or defined
contribution limit

An IRA that allows employee

pr-tax and employer
SIMPLE Plan
contributions. Typically for
Small businesses.

A qualified plan that allows

self-employed individuals to
Keogh Plan make tax deductible
contributions to a retirement
plan

A tax-deferred or pre-tax
Individual Annuity
retirement plan
 -Insurance Company
-Owner: Purchaser of contract
Parties in an annuity responsible for premium payments
contract -Annuitant: Person insured under the
contract
(There is no beneficiary)

The payout option that will guarantee

an annuity payment for the remainder
of an individual's life. This option
Straight Life Annuity typically provides the largest monthly
payment. Money will not transfer to
someone else after your death.

A Life Annuity that guarantees to

provide income payments for a
Life Annuity with Period minimum period of time or life.
Certain Payments will continue to a
beneficiary should the annuitant
die during the specified period.

A guaranteed-minimum annuity
that, on the annuitant's death,
refund annuity makes monthly payments to the
beneficiary until the total price of
the annuity is refunded.

Funded by single
premium. Payments are
Immediate annuity
made to annuitant
immediately
 An annuity that starts
sometime in the future.
Deferred Annuity Features an accumulation
period which could have
multiple payments.

type of annuity that

guarantees a certain rate
Fixed Annuity
of return. Insurer bears
investment risk.

Annuity that has a varying

rate of return based on
Variable Annuity
the mutual funds in which
one has invested

The employee contributed up

to a certain percentage of his
Thrift Plan or her salary. The employer
contributes a percentage of
the employees contribution

An annuity that features interest

rates that fluctuate based on the
Equity Indexed Annuity stock markets performance by
(EIA) guarantee annuitants payment of a
minimum principle amount and
interest rate