|Savings Incentive Match Plan for Employees (SIMPLE)|
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Definition of Savings Incentive Match Plan for Employees (SIMPLE)
Savings Incentive Match Plan for Employees (SIMPLE)
An IRA set up by an employer with no other retirement plan and employing fewer than 100 employees,
A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
Also called horizon matching, a variation of multiperiod immunization and cash
Financial planning conducted by a firm that encompasses preparation of both
A pension plan in which the sponsor agrees to make specified dollar payments to
A pension plan in which the sponsor is responsible only for making specified
Automatic reinvestment of shareholder dividends in more shares of a
A company contributes to a trust fund that buys stock on behalf of
A bond portfolio management strategy that involves finding the lowest cost portfolio
A financial blueprint for the financial future of a firm.
The process of evaluating the investing and financing options available to a firm. It
Arrangement used to finance inventory. A finance company buys the inventory, which is then
Defined benefit pension plans that are guaranteed by life insurance products. Related: noninsured plans
Financial plan covering two or more years of future operations.
A bank is said to match fund a loan or other asset when it does so by buying (taking) a deposit of
A bank runs a matched book when the distribution of maturities of its assets and liabilities are equal.
The accounting principle that requires the recognition of all costs that are associated with
Materials requirement planning
Computer-based systems that plan backward from the production schedule
Floating rate note whose interest rate is reset at more frequent intervals than the rollover
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Defined benefit pension plans that are not guaranteed by life insurance products. Related:
Overfunded pension plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).
A fund that is established for the payment of retirement benefits.
Plan for reorganization
A plan for reorganizing a firm during the Chapter 11 bankruptcy process.
The entities that establish pension plans, including private business entities acting for their
Planned amortization class CMO
1) One class of CMO that carries the most stable cash flows and the
Planned capital expenditure program
Capital expenditure program as outlined in the corporate financial plan.
Planned financing program
Program of short-term and long-term financing as outlined in the corporate
The length of time a model projects into the future.
Savings and Loan association
National- or state-chartered institution that accepts savings deposits and
Accounts that pay interest, typically at below-market interest rates, that do not have a
Short-term financial plan
A financial plan that covers the coming fiscal year.
An investment opportunity where a certain initial wealth is placed at risk and only two
Simple compound growth method
A method of calculating the growth rate by relating the terminal value to
Interest calculated only on the initial investment. Related:compound interest.
Simple linear regression
A regression analysis between only two variables, one dependent and the other explanatory.
Simple linear trend model
An extrapolative statistical model that asserts that earnings have a base level and
Simple moving average
The mean, calculated at any time over a past period of fixed length.
Symmetric cash matching
An extension of cash flow matching that allows for the short-term borrowing of
Tax-deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to
Underfunded pension plan
A pension plan that has a negative surplus (i.e., liabilities exceed assets).
If the average maturity of a bank's liabilities is less than that of its assets, it is said to be
The ability to establish automatic periodic mutual fund redemptions and have proceeds
See accruals accounting.
Planning, programming and budgeting system (PPBS)
A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres.
property, plant, and equipment
This label is generally used in financial
Interest paid only on the principal; calculated by multiplying the
cafeteria plan a “menu” of fringe benefit options that include
cash or nontaxable benefits
Employee Stock Ownership Plan (ESOP)
a profit-sharing compensation program in which investments are made in
enterprise resource planning (ERP) system
a packaged software program that allows a company to
a monetary reward provided for performance
manufacturing resource planning (MRP II)
a fully integrated materials requirement planning system that involves
materials requirements planning (MRP)
a computerbased information system that simulates the ordering and
a formulation of the details of implementing
the process of creating the goals and objectives for
a method of determining interest in which interest is earned only on the original investment (or principal) amount
a statistical technique that uses only one independent variable to predict a dependent variable
an iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems
the process of developing a statement of
the process of determining the specific
Manufacturing resource planning (MRP II)
An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of
The process of linking recognized revenue to any associated
Material requirements planning (MRP)
A computer-driven production methodology
A formal agreement between an entity and its employees, whereby the
Property, plant, and equipment
This item is comprised of all types of fixed assets
Time horizon for a financial plan.
Interest earned only on the original investment; no interest is earned on interest.
Plant and Equipment
Buildings and machines that firms use to produce output.
A retirement plan set up by an employer, into which employees can
A retirement plan similar to a 401k plan, except that it is designed
A flexible benefits plan authorized under the Internal Revenue
Defined Benefit Plan
A pension plan that pays out a predetermined dollar
Defined Contribution Plan
A qualified retirement plan under which the employer
Educational Assistance Plan
A plan that an employer creates on behalf of its
Employee Stock Ownership Plan (ESOP)
A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer.
Hourly Rate Plan
A method for calculating wages for hourly employees that involves
Incentive Stock Option
An option to purchase company stock that is not taxable
Nonqualified Retirement Plan
A pension plan that does not follow ERISA and
Piece Rate Plan
A wage calculation method based on the number of units of production
Profit Sharing Plan
A retirement plan generally funded by a percentage of company
Qualified Retirement Plan
A retirement plan designed to observe all of the requirements
Target Benefit Plan
A defined benefit plan under which the employer makes
An accounting principle that ties expense recognition to revenue recognition,
A budgeting process using summary-level information to
Enterprise resource planning system
A computer system used to manage all company
The movement of inventory from one company location to
Manufacturing resource planning
An integrated, computerized system for planning
Material requirements planning
A computerized system used to calculate material
A stock receipt for which no order was placed or for which an
Insured Retirement Plan
This is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today."
Registered Pension Plan
Commonly referred to as an RPP this is a tax sheltered employee group plan approved by Federal and Provincial governments allowing employees to have deductions made directly from their wages by their employer with a resulting reduction of income taxes at source. These plans are easy to implement but difficult to dissolve should the group have a change of heart. Employer contributions are usually a percentage of the employee's salary, typically from 3% to 5%, with a maximum of the lessor of 20% or $3,500 per annum. The employee has the same right of contribution. Vesting is generally set at 2 years, which means that the employee has right of ownership of both his/her and his/her employers contributions to the plan after 2 years. It also means that all contributions are locked in after 2 years and cannot be cashed in for use by the employee in a low income year. Should the employee change jobs, these funds can only be transferred to the RPP of a new employer or the funds can be transferred to an individual RRSP (or any number of RRSPs) but in either scenario, the funds are locked in and cannot be accessed until at least age 60. The only choices available to access locked in RPP funds after age 60 are the conversion to a Life Income Fund or a Unisex Annuity.
Registered Retirement Savings Plan (Canada)
Commonly referred to as an RRSP, this is a tax sheltered and tax deferred savings plan recognized by the Federal and Provincial tax authorities, whereby deposits are fully tax deductable in the year of deposit and fully taxable in the year of receipt. The ability to defer taxes on RRSP earnings allows one to save much faster than is ordinarily possible. The new rules which apply to RRSP's are that the holder of such a plan must convert it into income by the end of the year in which the holder turns age 69. The choices for conversion are to simply cash it in an pay full tax in the year of receipt, convert it to a RRIF and take a varying stream of income, paying tax on the amount received annually until the income is exhausted, or converting it into an annuity with guaranteed payments for a chosen number of years, again paying tax each year on moneys received.
Spousal Registered Retirement Savings Plan
This is an RRSP owned by the spouse of the person contributing to it. The contributor can direct up to 100% of eligible RRSP deposits into a spousal RRSP each and every year. Contributing to a spouses RRSP reduces the amount one can contribute to one's own RRSP, however, if the spouse is a lower income earner, it is an excellent way in which to split income for lower taxation in retirement years.
An expression of economic benefit that motivates behavior that might otherwise not take place.
Research and Development Incentives
Government programs to promote research and development.
Canada Savings Bonds
A bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value.
RRSP (Registered Retirement Savings Plan) (Canada)
A savings plan registered with Revenue Canada, which allows you to set aside a portion of your earned income now for use in the future. When you contribute to your RRSP, you are eligible to claim a tax deduction. However, cashing RRSPs at a later date will result in the payment of tax.
Regular Investment Plan (RIP)
A plan under which you may make regular deposits of the same amount to your Mutual Funds account once a month, once every 2 weeks, or once a week. You can also make regular deposits up to four times a month on any dates you choose.
Mutual funds that seek to preserve capital. This type of fund invests primarily in short-term securities with an average term to maturity of one year or less, or in the case of money market funds, 90 days or less.
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