1035 exchange
Section 1035 sets out provisions for the exchange of similar (insurance related) assets without any
tax consequence upon the conversion. If the exchange qualifies for like-kind exchange
consideration, income taxes are deferred until the new property or asset is sold. The 1035 exchange
provisions are only available for a limited type of assets including cash value life insurance policies
and annuity contracts.
10K
An annual report filed by corporations each year as required by the SEC. The 10K must be filed
within 90 days after the end of the fiscal year and provides a comprehensive overview of a companies
business practices and financial stability.
401(k) plan
A 401(k) plan is a profit-sharing plan that gives eligible employees the opportunity to defer a portion
of their current compensation into the plan. Amounts that are deferred are excluded from the
participant's gross income for the year of the deferral and are treated as employer contributions to
the plan. The plan may provide for employer matching contributions and discretionary profit-sharing
contributions. Administration fees are somewhat higher than simpler qualified plan alternatives.
403(b) plan
Tax deferred annuity plan available to employees of public schools and colleges, and certain
non-profit hospitals, charitable, religious, scientific and educational organizations.
457 plan
Non-qualified deferred compensation plans available to employees of state and local governments
and tax-exempt organizations.
