Money Mindset

Glossary

72(t)

A section in the Internal Revenue Code that provides guidelines for early withdrawals from retirement-based accounts.

401(k)

A type of qualified, employer-based plan in which employees can set aside a portion of their before-tax earnings for retirement. Account balances grow tax deferred until retirement, at which time distributions are taxed as ordinary income. Some employers offer their employees a match for a percentage of their contributions.

403(b)

A type of qualified retirement based plan that is established by a nonprofit or a public-education organization. Employees can set aside a portion of their before-tax earnings for retirement. Account balances grow tax deferred until retirement, at which time distributions are taxed as ordinary income.

457 plan

A type of qualified deferred compensation plan that is established by a state or a local government. Employees can set aside a portion of their before-tax earnings for retirement. Account balances grow tax deferred until retirement, at which time distributions are taxed as ordinary income.

adjusted gross income (AGI)

An income tax term commonly used to refer to the taxpayer’s gross income less specified expenses, such as traditional IRA and employer-sponsored retirement plan contributions.

agent

A person licensed by a state (or states) to sell insurance.

annual percentage rate (APR)

The annual rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly ...