| A | B |
|---|
| 401(k) | “defined contribution plan offered by a corporation to its 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for individuals with earned income and their non-income-producing spouses; growth is not taxed until money is withdrawn; contributions to an IRA are often tax-deductible.”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.” |
| 457 | “A deferred compensation plan.” |
| UTMA | “Used after you max out the ESA.” |
| SEPP | “A retirement plan for self-employed people.” |
