Glossary of Retirement Planning Terms
Looking at the 401(k) enrollment form but not sure what tax-deferred means or whether you have an employer matching program in the first place? Learn the key terms for retirement planning here.
401(k) Plan
Definition of a 401(k) retirement plan
Annuity
Definition of an annuity.
Asset Allocation
Definition of Asset Allocation
Automatic Investment Plan (AIP)
Definition of Automatic Investment Plan (AIP).
Balanced Fund
Definition of balanced fund
Cash Balance Plan Definition
Definition of a Cash Balance retirement plan.
Contingent Beneficiary Definition
Definition of a contingent beneficiary.
Contribution Percentage Definition
Definition of a contribution percentage.
Cost of Living Allowance (COLA)
Definition of a cost of living allowance for Social Security recipients
Defined Benefit Plan Definition
Definition of a defined benefit (DB) plan.
Defined Contribution Plan Definition
Definition of a defined contribution (DC) plan.
Deflation
Definition of deflation.
Deflation
Definition of deflation.
Diversification
Definition of diversification
Early Retirement Penalty
Definition of early retirement penalty
Earned Income
Learn the definition of earned income and what it means for your ability to contribute to an IRA.
Employer Matching Program
Definition of an employer matching program for a 401(k) plan
Fiduciary Duty
Definition of fiduciary duty
Home Equity
Definition of Home Equity
Individual Retirement Account (IRA)
Definition of a regular individual retirement account
Inflation
Definition of the inflation
Investment Portfolio Definition
Definition of an investment portfolio.
IRA Contribution Deadline
Definition of IRA contribution deadline
IRA Rollover
Definition of an IRA rollover.
Joint and Survivor Payment Option (or Annuity)
Definition of joint and survivor payment option (or annuity)
Life Annuity Payment Option
Definition of life annuity payment option
Life Cycle Fund
Definition of Life Cycle Fund
Life Expectancy
Definition of Life Expectancy
Money Purchase Plan Definition
Definition of a money purchase plan.
Mutual Fund
Definition of a mutual fund
Non-qualified Retirement Plan Definition
Definition of a non-qualified retirement plan.
Primary Beneficiary Definition
Definition of a primary beneficiary.
Profit-Sharing Plan Definition
Definition of a profit-sharing plan.
Qualified Retirement Plan Definition
Definition of a qualified retirement plan.
Required Minimum Distribution
Definition of a Required Minimum Distribution (RMD) from a qualified retirement plan such as a 401(k) or IRA
Roth Individual Retirement Account
Definition of a Roth individual retirement account
Social Security
Definition of Social Security Retirement Plan Benefits
Spousal IRA Definition
Definition of a spousal IRA.
Suitability Standard
Definition of suitability standard
Target Benefit Plan Definition
Definition of a target benefit plan.
Target Date Fund
Definition of Target Date Fund
Tax-Deferred
Definition of tax-deferred growth available through many qualified retirement plans
Tax-Free
Definition of tax-free growth available through a Roth IRA
Term Certain Payment Option
Definition of term certain payment option
Vesting
Definition of Vesting
6 Types of Retirement Plans You Should Know
Retirement plans can be confusing, this basic overview can help you understand how each one is different.