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
- 401(k)A retirement account through your job, often with an employer match — free money for saving.
- VestingThe process of earning full ownership of employer-contributed retirement money, often requiring you to stay for a set number of years.
- Contribution LimitThe maximum amount the government lets you put into a retirement account in a single year.
- 403(b) PlanA retirement savings plan offered to teachers, nonprofit workers, and public employees, similar to a 401k in the private sector.
- SIMPLE IRAA retirement plan for small businesses that lets both employees and the employer contribute with less paperwork than a 401k.
- Defined Contribution PlanA retirement plan like a 401k where you and your employer contribute, and your payout depends on investment performance.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.