401(k)s
Tax-deferred nest eggs
401(k)s are employer-sponsored retirement savings accounts in the United States, named after a section of the tax code.
Employees contribute a portion of their paycheck before taxes, and employers often match contributions up to a certain percentage.
The money grows tax-deferred until withdrawal in retirement: She's been maxing out her 401(k) for years.
Singular: 401(k).
Retiree's ongoing benefit
- nest eggSaved money for later
- savingsAccumulated money kept
- Social SecurityFederal old-age insurance program
- IRATax-advantaged retirement fund
golden years · annuity · retirement planning · financial security · retirement age · early retirement · retirement income · post-career
Taxes owed later, not now
- traditionalFollowing long-held customs
- after-taxMinus government withholdings
- taxable incomeEarnings subject to taxation
- tax bracketTaxable income category
tax shelter · tax break · tax-free growth · ordinary income · tax liability · conversion · rollover · tax planning
Collected works or assets
- stocksOwnership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
- index fundsSecurities mirroring market indices
asset allocation · diversification · Vanguard · Fidelity · rebalancing · risk tolerance · equities · growth funds
Removing funds before term ends
- penaltyPunishment for wrongdoing
- distributionAllocation across recipients
- loanBorrowed money repaid later
- cash outConvert assets to money
Identical in appearance
- vestingGaining full ownership
- vesting scheduleTimeline for earning ownership
- HREmployee management department
- benefits packageNon-wage employee compensation
employer contribution · profit sharing · safe harbor · fiduciary · ERISA · employer-sponsored
Amount removed from wages
- pre-taxBefore levies apply
- RothIRA permitting tax-free withdrawals
- contribution limitMaximum permitted donation amount
- automatic enrollmentDefault participation upon eligibility
deferral · percentage · withholding · annual limit · escalation · payroll · take-home pay
pension
Retiree's ongoing benefit
- nest eggSaved money for later
- savingsAccumulated money kept
- Social SecurityFederal old-age insurance program
IRA · golden years · annuity · retirement planning · financial security · retirement age · early retirement · retirement income · post-career · superannuation
tax-deferred
Taxes owed later, not now
- traditionalFollowing long-held customs
- after-taxMinus government withholdings
- taxable incomeEarnings subject to taxation
tax bracket · tax shelter · tax break · tax-free growth · ordinary income · tax liability · conversion · rollover · tax planning · deduction
portfolio
Collected works or assets
- stocksOwnership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
index funds · asset allocation · diversification · Vanguard · Fidelity · rebalancing · risk tolerance · equities · growth funds · bond funds
early withdrawal
Removing funds before term ends
- penaltyPunishment for wrongdoing
- distributionAllocation across recipients
- loanBorrowed money repaid later
matching
Identical in appearance
- vestingGaining full ownership
- vesting scheduleTimeline for earning ownership
- HREmployee management department
benefits package · employer contribution · profit sharing · safe harbor · fiduciary · ERISA · employer-sponsored
paycheck deduction
Amount removed from wages
- pre-taxBefore levies apply
- RothIRA permitting tax-free withdrawals
- contribution limitMaximum permitted donation amount
automatic enrollment · deferral · percentage · withholding · annual limit · escalation · payroll · take-home pay
401(k)schecking accounts
Accessible bank funds
credit card debt · liquid assets · payday loans · spending · consumption
401(k)sSocial Security
Federal old-age insurance program
state pensions · public pensions · welfare · universal basic income · government benefits