Page 173

Page | 172 Profit Sharing Plan – Section 401(a) Employer-based plan which may be linked to profits 401(k) Plans – Section 401(a) (Also called “CODA” Cash or Deferred Arrangement.) A contribution plan that allows employees to defer receiving compensation in order to have the amount contributed to the plan. Employees have a pre-tax contribution from wages.

Simple 401(k) Plans – Section 401(a) Available to small businesses 403(a) or 403 (b) Plans – Section 403(a) and 403 (b) Annuity or custodial account plans offered by tax- exempt organizations or public educational institutions Individual Retirement Accounts (IRA) – Section 408 Individual pre-tax retirement plan controlled by individuals rather than employers Roth IRA – Section 408(a) Similar to IRAs except that qualified distributions are tax exempt myRA – Section 408A Same as IRA, except that qualified distributions are tax exempt SIMPLE retirement account IRA – Section 408(p) Employer-based IRA (to which employees & employers contribute) available only to small businesses Simplified Employee Pension Plan (SEP) – Section 408(k) Employer-sponsored plan available only to small businesses; allows employer to contribute to employee accounts that function as IRA’s and are subject mostly to IRA rules. (Generally ceased to apply in 1996) Eligible 457(b) Plans – Section 457(b) Funded plan offered by state and local governments or unfunded plan offered by non- profit organizations. 501(c)(18) – Section 501(c)(18) Offered by unions pre 1959 – mostly obsolete Federal Thrift Savings Plans – Section 8439 of Title 5 of US Code Plan offered by the Federal government to its employees

Tax Deferred Education Account and Internal Revenue Code Section # What is it? Qualified Tuition Programs – Section 529 Allows owners to prepay a student’s educational expenses or contribute to an account to pay those expenses Coverdell Education Savings Accounts – Section 530 An IRA type of account designed to pay a student’s education expense.

D. Exclude one burial plot per household member, including disqualified household members.

E. Exclude the value of one funeral agreement per household member.

F. Licensed vehicles will be excluded as specified in Section 9510

G. The portion of property, real or personal, that is directly related to the maintenance or use of a vehicle excluded under section 9510(A) 1, 2, or 5.