Insurance Handbook - Alaska Department of Community and ...

Glossary
401(K) PLAN
An employer-sponsored retirement savings
plan funded by employee contributions,
which may or may not be matched by the
employer. Federal laws allow employees to
invest pretax dollars, up to a stated maximum
each year.
*403(B) PLAN
In the United States, an arrangement that
allows not-for-profit employers and their
employees to make contributions to a taxdeferred
retirement savings plan established
for the benefit of employees.
529 SAVINGS PLANS
State-administered plans designed to
encourage households to save for college
education. Named after a part of the
78 I.I.I. Insurance Handbook www.iii.org/insurancehandbook
Internal Revenue tax code, these saving
plans allow earnings to accumulate free of
federal income tax and sometimes to be
withdrawn to pay for college costs taxfree.
There are two types of plans: savings and
prepaid tuition. Plan assets are managed
either by the state’s treasurer or an outside
investment company. Most offer a range of
investment options.
A
A-SHARE VARIABLE ANNUITY
A form of variable annuity contract where
the contract holder pays sales charges up
front rather than eventually having to pay
a surrender charge.
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