Page 136 - The Informed Fed--Hearn (edited 10.29.20)

Probate: The process used to make an orderly distribution and transfer
of property from the deceased to a group of beneficiaries. The probate
process is characterized by court supervision of property transfer, filing
of claims against the estate by creditors and publication of a last will and
testament.

Profit Sharing plan: A profit-sharing plan is the most flexible and
simplest of the defined contribution plans. It permits discretionary
annual contributions that are generally allocated on the basis of
compensation.

Prohibited IRA transactions: Generally, a prohibited transaction is any
improper (self-dealing) use of the IRA by the account owner. Some
examples include borrowing money from an IRA, using an IRA to secure
a loan and selling property to an IRA.

Prospectus: A detailed statement prepared by an issuer and filed with
the SEC prior to the sale of a new issue. The Prospectus gives detailed
information on the issue and on the issuer’s condition and prospects.

Qualified Retirement plan: A Qualified Retirement plan is a retirement
plan that meets certain specified tax rules contained primarily in section
401(a) of the Internal Revenue Code. These rules are called plan
qualification rules. If the rules are satisfied, the plan’s trust is exempt
from taxes.

Refinance: To refinance one’s mortgage is to retire the existing
mortgage using the proceeds of a new mortgage and using the same
property as collateral. This is usually done to secure a lower interest rate
mortgage or to access equity from the property.

135