Page 136 - The Informed Fed--Hearn Wealth Management

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

informa

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

from taxes.

Refinance:

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.

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