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
- 457 PlanA retirement plan for state and local government workers that allows penalty-free withdrawals once you leave your job.
- Tax-Deferred GrowthInvestment gains that build up untaxed inside a retirement account until you withdraw the money later.
- PensionA retirement plan where your employer promises a set monthly payment for life, usually based on your salary and years worked.
- 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.
- Retirement IncomeThe money you live on after you stop working, drawn from savings, Social Security, pensions, and other sources.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.