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
- 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.
- Roth ConversionMoving money from a pre-tax retirement account into a Roth account and paying the taxes now for tax-free growth later.
- Deferred AnnuityAn annuity that grows for years before payments begin, letting your money build up before you start drawing income.
- Required Minimum Distribution (RMD)The minimum amount you are required to withdraw from certain retirement accounts each year once you reach a set age.
- Compound InterestInterest that earns interest — the engine behind long-term growth.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.