Definitions

Actuarial Valuation Report
A summary of the actuarial calculations performed in accordance with the Internal Revenue Code (IRC) and Generally Accepted Actuarial Principles showing the minimum required contribution and maximum tax-deductible contribution amounts.

Asset Reconciliation
Reconcile beginning and end of year asset values and document the various overall activity e.g. investment return, contributions, expenses, benefit payments.

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A savings model for a Keogh db pension plan that has as its objective the matching of contribution levels with Self-Employed Net Earnings (SENE).

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Defined Benefit pension plan promises a regular monthly BENEFIT for life starting at retirement age.

dc
Defined Contribution pension plan are those which require annual CONTRIBUTIONS.

Enrolled Actuary
One who has obtained an EA number from the Joint Board for the Enrollment of Actuaries. Provides pension actuarial services and satisfies professional duty requirements. Refer to the websites of ASPPA (American Society of Pension Professionals and Actuaries) and the SOA (Society of Actuaries)

Life Annuity
A form of benefit that provides lifetime payments to the member.

PBGC
Pension Benefits Guaranty Corporation is a Federal Agency that guarantees payments from private pension plans.

Plan document
A written document that prescribes the plan provisions such as the retirement benefit, vesting rules and forms of payment. It will be provided by a third party who will ensure compliance. db65.com coordinates/oversees/reviews the document.

Schedule C net income
Gross income less related business expenses

Self-employed
Anyone who has SENE and who is subject to the self-employed tax under social security. If no tax is withheld from your income, you are likely self-employed.

Self-Employed Net Earnings (SENE)
Schedule C Net Income less Keogh contribution less 1/2 of the self-employment tax.

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