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Tax Glossary
What Is “Accumulated earnings tax”?
The accumulated earnings tax is a penalty tax imposed by the IRS on C corporations that hold onto excessive amounts...
Tax Glossary
What Is “Accumulated earnings and profits”?
Accumulated earnings and profits (often abbreviated as AE&P) is an IRS tax calculation that measures a corporation’s economic ability to...
Tax Glossary
What Is “ Accumulated adjustments account ”?
The Accumulated Adjustments Account (AAA) is a special tax tracking tool used exclusively by S-corporations. It keeps a running total...
Tax Glossary
What Is the 60-Day Rollover Rule?
The 60-day rollover rule is a strict IRS deadline that dictates how long you have to deposit a retirement account...
Tax Glossary
What Is a 457(b) Plan?
A 457(b) plan is an employer-sponsored, tax-advantaged retirement savings plan available to state and local government employees, as well as...
Tax Glossary
What Is a 403(b) Plan?
A 403(b) plan is an employer-sponsored retirement savings account designed specifically for employees of public schools, universities, churches, and certain...
Tax Glossary
What Is a 401(k) Plan?
A 401(k) plan is an employer-sponsored retirement savings account that offers powerful tax advantages to encourage workers to save for...
Tax Glossary
What Is the 10% Additional Tax?
The 10% additional tax is a federal penalty levy imposed by the IRS when you take an early distribution from...
Tax Glossary
What Is “Form 5498”?
Form 5498 is an IRS information form that reports IRA activity such as contributions, rollovers, Roth IRA conversions, recharacterizations, and...
Tax Glossary
What Is “Vesting”?
What Is Vesting? Vesting is the process of earning full ownership of an asset, such as employer contributions to a...