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
- SEP-IRAA retirement plan for self-employed people and small business owners that allows larger contributions than a standard IRA.
- SIMPLE IRAA retirement plan for small businesses that lets both employees and the employer contribute with less paperwork than a 401k.
- 401(k)A retirement account through your job, often with an employer match — free money for saving.
- Contribution LimitThe maximum amount the government lets you put into a retirement account in a single year.
- Self-Employment TaxThe Social Security and Medicare tax that self-employed people pay to cover both the employee and employer shares.
- Roth 401(k)A workplace retirement account where you contribute after-tax money so qualified withdrawals in retirement come out tax-free.
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Plain-English education — not personalized legal, tax, or investment advice.