Qualified Plans are employer-sponsored trusts that meet a number of qualification requirements under the Internal Revenue Code. They offer a number of tax advantages, including the availability of a current deduction for contributions, without a corresponding inclusion in income of the plan beneficiaries.

Related Employers are those that must be treated as though they were one employer for the plan rules, because of common ownership or related operations.

Target Benefit Plans take age into account in determining a participant's annual contribution. Unlike defined benefit pensions, the retirement benefits are determined by the amount in the participant's account.

Targeted Employee is our phrase to describe those to whom the principal benefits of a plan are to be directed.

Top-Heavy plans are those in which more than 60% of the benefits belong to "Key" employees. Special contribution and vesting requirements are applied to top-heavy plans.

Trust Fund refers to the requirement that most plan assets be held in the name of a Trustee (one or more individuals or institutions). A qualified trust is tax exempt.

Vesting refers to the fact that an employee will be entitled to part (the "vested" portion) or all of his plan benefits, even upon termination of employment. Often, a "vesting schedule" provides that this percentage will increase over time or with years of service.

$30,000/25% of compensation limits are imposed upon annual allocations for an individual, including employer and employee contributions and forfeitures.