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
- Catch-Up ContributionAn extra amount people age fifty and older can add to retirement accounts beyond the standard yearly limit.
- 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.
- Employer MatchMoney your company adds to your retirement account based on how much you contribute, effectively free money toward your savings.
- Excess ContributionMoney added to a retirement account above the yearly limit, which can trigger a penalty until you remove it.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.