Per Stirpes vs. Per Capita
Whether a deceased beneficiary's share goes to their descendants or to the survivors.
What is Per Stirpes vs. Per Capita?
Per stirpes ('by the branch'): if a named beneficiary dies first, their share passes down to their descendants. Per capita ('by the head'): the share is divided among the surviving named beneficiaries.
Per Stirpes vs. Per Capita: a worked example
Three children named; one predeceases, leaving two kids. Per stirpes: each grandchild gets 1/6. Per capita: the two surviving children split it 50/50.
More terms in Retirement Plans, Accounts & Trading
IRA Rollovers vs. Transfers
60-day rollovers are limited to one a year; direct transfers are unlimited.
10% Early Withdrawal Penalty & Exceptions
Distributions before 59 1/2 cost 10% extra, unless an exception applies.
Solo 401(k)
A 401(k) for a self-employed owner with no employees other than a spouse.
Defined Benefit Plan
A pension promising a specific benefit; the employer bears the investment risk.
Defined Contribution Plan
An individual account plan whose payout depends on contributions and returns.
403(b) Plan
A salary-deferral plan for public schools and 501(c)(3) nonprofits.
457 Plan
Deferred compensation for state and local government employees.
SIMPLE IRA
A low-cost plan for employers with 100 or fewer employees.
All Retirement Plans, Accounts & Trading terms · Full glossary