FICEP PART 2
401k - ANSWERS-Plan A plan which allows employees to make tax-
deferred contributions to retirement savings accounts. Many
employers match these contributions at a specified ratio to help
retirement savings build faster.
Beneficiary - ANSWERS-The person or persons who are designated
to receive the amount of the death benefit if the policyholder dies.
Cafeteria Plan - ANSWERS-Tax-qualified flexible benefit plans that
are offered by participating employers. It was created by the internal
Revenue Code Section 125
Capital Gains - ANSWERS-The difference between what you pay for
an investment--stock, your home, or another possession-- and what
you earn when the item is sold
Compound interest - ANSWERS-The ability of savings to grow when
the principal and interest are left untouched. The member earns a
return both on the original principal and on all the interest that accrues
over time
Death benefit - ANSWERS-the amount that is paid upon the death of
the policy-holder
, deductible - ANSWERS-the amount that the policy-holder must pay
before insurance begins to cover expenses
Dividends - ANSWERS-The amount that stockholders in a company
receive. Represents a portion of a company's profits
Flexible Spending Plan (FSA) - ANSWERS-A program offered by
employers which allows employees which allows employees to pay
for eligible out-of-pocket health care and dependent care expenses
with pre-tax dollars. Have a Use-it-or-lose-it provision, which means
that any funds that are unused at the end of the plan year are forfeited.
Health Savings Act (HSA) - ANSWERS-A program offered by
employers which allows employees enrolled in high-deductible health
plans (HDHPs) to save for future qualified medical expenses on a tax-
free basis. There is no use it or lose it provisions which means that
money that is not spent for medical expenses remains in the account
to accuse interest.
Indemnification - ANSWERS-An agreement to hold an individual or
business harmless when they are engaged in a specific activity or
while they are at a specific location.
Individual retirement account (IRA) - ANSWERS-A retirement
investing plan for employees which allows them to contribute before-
tax funds to the ___. The money is then taxed when it is withdrawn
401k - ANSWERS-Plan A plan which allows employees to make tax-
deferred contributions to retirement savings accounts. Many
employers match these contributions at a specified ratio to help
retirement savings build faster.
Beneficiary - ANSWERS-The person or persons who are designated
to receive the amount of the death benefit if the policyholder dies.
Cafeteria Plan - ANSWERS-Tax-qualified flexible benefit plans that
are offered by participating employers. It was created by the internal
Revenue Code Section 125
Capital Gains - ANSWERS-The difference between what you pay for
an investment--stock, your home, or another possession-- and what
you earn when the item is sold
Compound interest - ANSWERS-The ability of savings to grow when
the principal and interest are left untouched. The member earns a
return both on the original principal and on all the interest that accrues
over time
Death benefit - ANSWERS-the amount that is paid upon the death of
the policy-holder
, deductible - ANSWERS-the amount that the policy-holder must pay
before insurance begins to cover expenses
Dividends - ANSWERS-The amount that stockholders in a company
receive. Represents a portion of a company's profits
Flexible Spending Plan (FSA) - ANSWERS-A program offered by
employers which allows employees which allows employees to pay
for eligible out-of-pocket health care and dependent care expenses
with pre-tax dollars. Have a Use-it-or-lose-it provision, which means
that any funds that are unused at the end of the plan year are forfeited.
Health Savings Act (HSA) - ANSWERS-A program offered by
employers which allows employees enrolled in high-deductible health
plans (HDHPs) to save for future qualified medical expenses on a tax-
free basis. There is no use it or lose it provisions which means that
money that is not spent for medical expenses remains in the account
to accuse interest.
Indemnification - ANSWERS-An agreement to hold an individual or
business harmless when they are engaged in a specific activity or
while they are at a specific location.
Individual retirement account (IRA) - ANSWERS-A retirement
investing plan for employees which allows them to contribute before-
tax funds to the ___. The money is then taxed when it is withdrawn
