SVIA

Glossary

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Tax, Legal, Regulatory, or Accounting Risk

The risk there could be a change in a law, regulation, or accounting rule applicable to the stable value investment option or any investment contract.

Tax-Deferred Savings Plan

tax-deferred savings plans are savings plans established by sections of the Internal Revenue Code and governed by the Internal Revenue Service. Tax-deferred savings plans are typically offered by employers. For defined contribution plans, these tax-deferred savings plans include 401(k), 457, 403(b) and some college tuition plans such as 529 plans.

Traditional GIC

A traditional GIC is typically a non-participating, fully guaranteed investment contract backed by the assets in an insurance company’s general account. (See also guaranteed investment contract.)

Transfer Restriction

A plan rule or contractual provision limiting the frequency, amount, or direction of participant transfers between plan investment options. (See also equity wash.)

Transfers

Movement by a plan participant of assets from one investment option to another option within the plan. (See also participant-directed cash flow.)

Trustee

The person(s), bank or trust company that has responsibility over some or all financial aspects (receipts, disbursements, and investments) of a defined contribution plan or defined benefit plan. Most institutional trustees serve as “directed trustees” that are subject to direction by a plan’s named fiduciaries.