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
- RolloverMoving money from one retirement account to another, such as a 401k into an IRA, without triggering taxes.
- Traditional IRAA retirement account where you often deduct contributions now and pay taxes later when you withdraw the money.
- 401(k)A retirement account through your job, often with an employer match — free money for saving.
- In-Service RolloverMoving money out of your workplace plan into an IRA while you still work there, if the plan permits it.
- Roth ConversionMoving money from a pre-tax retirement account into a Roth account and paying the taxes now for tax-free growth later.
- Early Withdrawal PenaltyA fee a bank charges when you take money out of a certificate of deposit before its agreed-upon maturity date.
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Plain-English education — not personalized legal, tax, or investment advice.