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.
- Catch-Up ContributionAn extra amount people age fifty and older can add to retirement accounts beyond the standard yearly limit.
- 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.
- 401(k)A retirement account through your job, often with an employer match — free money for saving.
- Early Withdrawal PenaltyA fee a bank charges when you take money out of a certificate of deposit before its agreed-upon maturity date.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.