A 1035 Exchange is an exchange process that permits individuals to replace their existing life insurance policy or annuity contract with a similar new contract or policy. Thanks to a provision in the tax code, this can be affected without suffering any negative tax repercussions as part of the trade off exchange. The Internal Revenue Service permits those who hold [...]

401k retirement plans are specific kinds of accounts that the government established to help individuals to plan and save for retirement. Individuals fund these accounts using pre-taxed dollars from payrolls. People invest money in these accounts into several different types of investments. These include stocks, mutual funds, and bonds. Gains earned in the account include dividends, capital gains, and interest. [...]

403(b) plans were created for employees of schools, churches, and tax exempt organizations. Individuals who are eligible may establish and maintain their own 403(b) accounts.  Their employers can and often do make contributions to the employees’ accounts. Individuals are able to open one of three different types of 403(b)s. The first is an annuity plan that an insurance company establishes. [...]

The 408(k) Plan is a retirement plan that employers set up to assist their employees in saving money for their post working years. It is named for the section of the IRS code that describes these accounts. Though there are some distinctions, a 408(k) Plan is actually a simpler version of the ever popular 401(k) plan. These 408(k)’s are intended [...]

412(i) Plans are pension plans that are classified as qualified defined benefit arrangements. They were established by the IRS for small companies and self employed business owners to have a way to save for their retirement and those of their employees. Employers fund these plans with only fixed annuities or both annuities and permanent life insurance. For the 412(i) Plans [...]

A 457(b) plan is a retirement savings vehicle. It derives its name from the Internal Revenue Service code that regulates the plans in its section 457(b). Many times this retirement account name is simply shortened to 457 Plan. There are many similarities between these 457 Plans and tax deferred, employer provided retirement vehicles including 403(b) and 401(k) plans. All of [...]

501(c) designations refer to incorporations of entities which are established as charitable not for profit corporations. These charitable operations are companies which are founded in order to offer the benefits of a community service instead of attempting to make profits for their founders or managers. When such an outfit is incorporated it becomes legal. This gives it responsibility for the [...]