The Retirement Corporation of America


Glossary


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Employer-Sponsored Retirement Plan

A tax-favored retirement plan that is sponsored by an employer. Among the more common employer-sponsored retirement plans are 401(k) plans, 403(b) plans, simplified employee pension plans, and profit-sharing plans.

Equity
The value of a person's ownership in real property or securities; the market value of a property or business, less all claims and liens upon it.

ERISA
The Employee Retirement Income Security Act is a federal law covering all aspects of employee retirement plans. If employers provide plans, they must be adequately funded and provide for vesting, survivor's rights, and disclosures.

ESOP(employee stock ownership plan)
A defined contribution retirement plan in which company contributions must be invested primarily in qualifying employer securities.

Executor
A person named by the probate courts or the will to carry out the directions and requests of the decendent.