InvestorWords.com

A retirement plan sponsored by employers which is attractive for employers because it avoids some of the administrative fees and paperwork of plans such as a 401(k) plan. Employers benefit from the tax-deductible contributions made to the plan, and employees may elect to have salary deferrals in order to contribute to the plan. The employer has the option of matching a certain portion of the employee's deferrals or making non-elective contributions to all eligible employees (an annual limit applies in both cases). A minimum compensation eligibility requirement exists for employees who want to join this plan, and employees cannot establish any other qualified retirement plans at the same time.

• Tax Implications of Different Types of Investments
• Mutual Funds and Your Portfolio
• Basics of The Value Investing Stock Strategy
• Steps to Take to Improve your Credit
• The Difference between Financial Advisors and Financial Analysts
• The Economy: From Boom to Recession

Featured Advertiser