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Retirement Terms

Financial terms related to retirement accounts, planning, and income.

Individual Retirement Account (IRA)

A personal retirement savings account with tax advantages; types include Traditional and Roth.

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Keogh Plan

A tax-deferred retirement plan for self-employed individuals and unincorporated businesses.

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Required Minimum Distribution (RMD)

The minimum amount you must withdraw from retirement accounts annually after age 73.

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Roth vs Traditional (Retirement Accounts)

The choice between tax deduction now (Traditional) or tax-free withdrawals (Roth).

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Social Security

A U.S. government program providing retirement, disability, and survivor benefits.

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Traditional IRA

A retirement account where contributions may be tax-deductible; withdrawals are taxed.

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Vesting

The process by which an employee gains ownership of employer-contributed retirement benefits.

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Annuity

A contract providing historically reliable income for life or a fixed period, issued by insurers.

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401(k)

Employer-sponsored retirement plan that lets you contribute pre-tax (Traditional) or post-tax (Roth) dollars, often with a company match.

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Safe Withdrawal Rate (SWR)

The yearly percentage of a retirement portfolio you can withdraw with low risk of running out of money over a 30-year retirement.

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