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.
- Hardship WithdrawalTaking money from a retirement plan early to cover an urgent financial need, often still subject to taxes and penalties.
- Early Withdrawal PenaltyA fee a bank charges when you take money out of a certificate of deposit before its agreed-upon maturity date.
- VestingThe process of earning full ownership of employer-contributed retirement money, often requiring you to stay for a set number of years.
- Employer MatchMoney your company adds to your retirement account based on how much you contribute, effectively free money toward your savings.
- 403(b) PlanA retirement savings plan offered to teachers, nonprofit workers, and public employees, similar to a 401k in the private sector.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.