403(b)
Nonprofit retirement account
A 403(b) is a retirement savings plan for employees of public schools, nonprofits, and certain tax-exempt organizations—the nonprofit equivalent of a 401(k).
Contributions are typically deducted from paychecks before taxes, reducing taxable income while funds grow tax-deferred until withdrawal: She maxes out her 403(b) every year.
Also called a tax-sheltered annuity.
Organization serving public good
- public schoolFree government-run education
- teacherOne who instructs others
- educatorOne who imparts knowledge
- 501(c)(3)Nonprofit tax classification
university · college · school district · payroll deduction · human resources · employee benefit · clergy · minister
Retiree's ongoing benefit
- annuityPeriodic fixed payment
- nest eggSaved money for later
- savingsAccumulated money kept
- deferred compensationIncome paid after earning
tax-sheltered · TSA · employer-sponsored · beneficiary · vesting · rollover · withdrawal · distribution
Taxes owed later, not now
- pre-taxBefore levies apply
- tax-advantagedOffering tax benefits
- tax shelterLegal income-shielding arrangement
- contribution limitsMaximums on donations allowed
Collectively managed securities portfolios
- portfolioCollected works or assets
- asset allocationDistributing investments strategically
- feesCosts for services
- returnsProfits from investments
growth · diversification · Fidelity · Vanguard · fund transfer · rebalancing
Professional guiding monetary decisions
- retirement ageStandard work-ending milestone
- compound interestReturns on reinvested earnings
- goal settingIdentifying desired outcomes
- income replacementFunds covering lost earnings
nonprofit
Organization serving public good
- public schoolFree government-run education
- teacherOne who instructs others
- educatorOne who imparts knowledge
501(c)(3) · university · college · school district · payroll deduction · human resources · employee benefit · clergy · minister · enrollment
pension
Retiree's ongoing benefit
deferred compensation · tax-sheltered · TSA · employer-sponsored · beneficiary · vesting · rollover · withdrawal · distribution · catch-up
tax-deferred
Taxes owed later, not now
- pre-taxBefore levies apply
- tax-advantagedOffering tax benefits
- tax shelterLegal income-shielding arrangement
contribution limits · IRS · early withdrawal penalty · after-tax · tax bracket
mutual funds
Collectively managed securities portfolios
- portfolioCollected works or assets
- asset allocationDistributing investments strategically
- feesCosts for services
returns · growth · diversification · Fidelity · Vanguard · fund transfer · rebalancing
financial advisor
Professional guiding monetary decisions
- retirement ageStandard work-ending milestone
- compound interestReturns on reinvested earnings
- goal settingIdentifying desired outcomes
- retirementretirement, retire, retirement age, retirees, retirement income
- savingssavings account, piggy bank, online savings, savings bonds, savings plan