A defined contribution plan that permits employees to have a portion of their salary deducted from their paycheck and contributed to an account. Federal (and sometimes state) taxes on the employee contributions and investment earnings are deferred until the participant receives a distribution from the plan (typically at retirement). Employers may also make contributions to a participant’s account.
The amount of money in an account at the start of the business day, including all deposits and withdrawals posted the previous night, whether or not the funds have been collected. See “collected balance.”
A printed or online statement of all the funds paid out by or paid into your account during a statement cycle.
A open bank account in which transactions can be made; usually an account that has had activity within the last 3 years.
Annual percentage yield (APY)
The total amount of interest paid by the bank on your deposit account (checking, savings, CDs, IRAs) during the year. Includes both interest paid on the amount held in the account, as well as compounded interest for the year.
A branch office. There are more than 100 banking center locations.
Top Heavy Plan
A plan in which 60% of account balances (both vested and non-vested) are held by certain highly compensated employees. NOT to be confused with a 401(k) plan which fails either the ADP or ACP test.
The individual, group of individuals, bank, or trust company having fiduciary responsibility for holding plan assets.
The participants’ ownership right to company contributions.
The structure for determining participants’ right to company contributions that have accrued in their individual accounts, similar to their “ownership interest” in their employer contributed accounts. In plans with graduated vesting, vesting occurs in specified increments