401k
Employer retirement account
A 401k is a retirement savings plan offered by American employers, allowing workers to contribute a portion of their paycheck before taxes.
The money grows tax-deferred until withdrawal, typically after age 59½.
Many employers match contributions up to a percentage: My company matches 401k contributions up to 6%.
Named after a section of the U.S. tax code.
Also written 401(k).
Retiree's ongoing benefit
- IRATax-advantaged retirement fund
- Roth IRATax-advantaged retirement account
- annuityPeriodic fixed payment
- social securityPublic financial protection programs
golden years · retiree · benefits · superannuation · distribution · rollover · vesting · early withdrawal
Game between opponents
- vesting scheduleTimeline for earning ownership
- fiduciaryAgent bound by loyalty
- enrollmentAct of registering officially
- human resourcesEmployee administration department
Something given to help
- balanceSteadiness or amount owed
- accountRecord of dealings
- fundsAvailable financial resources
- accumulationCollected mass over time
assets · reserve · capital · principal · compound interest · payroll deduction · savings rate · emergency fund
Taxes owed later, not now
- pre-taxBefore levies apply
- withholdingKeeping from another
- deductionConclusion from premises
- taxableSubject to government levy
bracket · traditional · Roth · after-tax · tax-advantaged · tax shelter · contribution limit · tax penalty
Collected works or assets
- stocksOwnership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
- index fundsSecurities mirroring market indices
diversification · allocation · returns · growth · risk · market · rebalancing · performance
pension
Retiree's ongoing benefit
- IRATax-advantaged retirement fund
- Roth IRATax-advantaged retirement account
- annuityPeriodic fixed payment
social security · golden years · retiree · benefits · superannuation · distribution · rollover · vesting · early withdrawal · retirement age
match
Game between opponents
- vesting scheduleTimeline for earning ownership
- fiduciaryAgent bound by loyalty
- enrollmentAct of registering officially
human resources · payroll · profit sharing · ERISA · matching contribution
contribution
Something given to help
accumulation · assets · reserve · capital · principal · compound interest · payroll deduction · savings rate · emergency fund · wealth building
tax-deferred
Taxes owed later, not now
- pre-taxBefore levies apply
- withholdingKeeping from another
- deductionConclusion from premises
taxable · bracket · traditional · Roth · after-tax · tax-advantaged · tax shelter · contribution limit · tax penalty · IRS
portfolio
Collected works or assets
- stocksOwnership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
index funds · diversification · allocation · returns · growth · risk · market · rebalancing · performance
- finance termsnet profit, gross profit, budget, credit, debt
- domestic investmentstocks, bonds, real estate, mutual funds, ETFs
- investment accountsbrokerage account, trading account, margin account, cash account, IRA
- money tipsbudgeting, emergency fund, investing, debt repayment, rainy day fund
- retirement plansIRA, Roth IRA, 403b, defined benefit, annuity
- tax shelterstax shelter, 401(k), IRA, Roth IRA, FSA
401kpension
Retiree's ongoing benefit
company pension · Social Security · annuity · guaranteed income · IRA
401kspending
Outlaying of funds
consumer debt · credit card debt · living paycheck to paycheck · payday loan · consumption
401kchecking account
Bank deposit for transactions
savings account · petty cash · liquid assets · spending money · walking-around money