A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Contribution LimitThe maximum amount the government lets you put into a retirement account in a single year.
- 401(k)A retirement account through your job, often with an employer match — free money for saving.
- Traditional IRAA retirement account where you often deduct contributions now and pay taxes later when you withdraw the money.
- Roth IRAA retirement account funded with after-tax money that grows and comes out tax-free.
- 403(b) PlanA retirement savings plan offered to teachers, nonprofit workers, and public employees, similar to a 401k in the private sector.
- Retirement AgeThe age at which you choose to stop working, which affects your savings, Social Security timing, and Medicare eligibility.
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Plain-English education — not personalized legal, tax, or investment advice.