PF Ch 3 Savings Word Scramble
|
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Term | Definition |
401(k) | defined contribution plan offered by a corporation to its employees, which allows employees to set aside tax-deferred income for retirement purposes; in some cases, employers will match their contributions. |
Educational Savings Account (ESA) | after-tax college fund that grows tax-free for educational uses; eligibility based on parents’ annual income. |
Individual retirement Arrangement (IRA) | tax-deferred arrangement for individuals with earned income and their non-income-producing spouses; growth is not taxed until money is withdrawn; contributions to an IRA are often tax-deductible. |
Pre-Tax Retirement Plan | a type of retirement plan where you put money in before taxes have been taken out, but must pay taxes on the money at the time of withdrawal |
Rollover | movement of funds from a tax-deferred retirement plan from one qualified plan or custodian to another; incurs no immediate tax liabilities or penalties, but requires IRS reporting |
Roth IRA | retirement account funded with after-tax dollars that subsequently grows tax free |
Tax-Favored Dollars | Money that is working for you, either tax-deferred or tax-free, within a retirement plan. |
Created by:
mgarda
Popular Finance sets