A 401(k) plan is a retirement savings plan sponsored by an employer. It allows employees to save and invest a portion of their paycheck before taxes are taken out.
A type of hybrid pension plan in which each participant's benefit is stated as a hypothetical account balance, increased with pay credits for additional service and interest credits to reflect the passage of time.
A Cash or Deferred Arrangement (CODA), commonly known as a 401(k) plan, is a retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out.
Supplemental tax-deferred contributions to IRAs and other qualified plans allowed for individuals 50 years or older.
A contributory pension plan is a retirement savings plan in which both the employee and employer contribute funds. These plans are designed to provide financial security to employees after retirement by pooling resources from both parties.
A Defined-Contribution (DC) Pension Scheme is a retirement plan where employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.
A type of pension plan where the contributions are fixed, but the benefits vary based on investment returns. Employees and sometimes employers contribute to a tax-deferred account with flexible investment options.
A funded retirement plan is a type of retirement savings arrangement where contributions are made to a dedicated fund to provide future retirement benefits.
A General Retirement System encompasses all mechanisms and financial arrangements designed to provide individuals with income or benefits during their retirement years. These systems often include pensions, social security, and personal retirement savings plans.
An Individual Retirement Account (IRA) is a trust fund designed for individual employees to save for retirement with tax advantages. Contributions, limits, and tax benefits all depend on various conditions such as income level and participation in other qualified plans.
An Individual Retirement Account (IRA) is a retirement savings account that provides tax advantages for retirement savings in the United States. It is designed to help individuals set aside funds for their retirement.
A provision of the IRA law enabling persons receiving lump-sum payments from their company's pension or profit-sharing plan due to retirement or other termination of employment to roll the amount over, tax-free, into an IRA investment plan within 60 days.
A nest egg refers to assets saved or set aside for a significant purchase or a person's retirement. These assets are generally invested in conservative financial instruments to safeguard their value and ensure steady growth over time.
A private pension plan credit given to an employee’s past service with an employer prior to the establishment of a pension plan. Usually, a lower percentage of compensation is credited for benefits for past service than for future service benefits.
A pension plan is a retirement savings program sponsored by an employer that provides its employees with regular income post-retirement. There are various types of pension plans, each with different rules regarding contributions, benefits, and tax treatment.
Congressional pension reform legislation designed to encourage individual retirement savings and to make employer-funded plans subject to stricter regulation. Provisions also affect charitable contributions, long-term care, college savings plans, and assistance to employees in setting up 403(b) and 401(k) plans.
An individual retirement account (IRA) created by the Taxpayer Relief Act of 1997 that allows capital to accumulate tax-free under certain conditions.
A salary reduction plan allows employees to have a certain percentage of their gross salary withheld and invested in options such as stocks, bonds, or money market funds.
A Section 401(k) Plan allows an employee to contribute pretax earnings to an individual account, invested in various financial instruments, accumulating tax-deferred until withdrawal.
The Self-Employment Individuals Retirement Act, commonly known as the Keogh Plan, is a retirement plan designed for self-employed individuals and small business owners, allowing them to save for retirement with tax-deferred contributions.
A Self-Employment Retirement Plan, also referred to as a Keogh Plan, is a tax-deferred pension account specifically designed for self-employed individuals and unincorporated businesses. It enables them to set aside a portion of their income for retirement.
A SEP-IRA (Simplified Employee Pension) is a retirement savings plan designed for self-employed individuals and small business owners, allowing them to make contributions toward their own and their employees' retirement savings.
An individual retirement account created in the name of a nonworking spouse, allowing potentially larger contributions based on the working spouse's income.
Superannuation is an organizational pension program created by a company for the benefit of its employees, synonymous with an occupational pension scheme. Funds deposited in a superannuation account grow until retirement or otherwise withdrawn.
A voluntary plan, short for voluntary deductible employee contribution plan, is a type of pension plan where the employee elects to have contributions (which, depending on the plan, may be before or after-tax) deducted from each paycheck.
A workplace pension is a retirement savings plan arranged by employers to help employees save towards their retirement in addition to the state pension.
