retirement account

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Thân thiện
retirement account

A woman reviews her retirement account statement at the kitchen table.

Definition

Noun: 1. A specialized savings or investment plan designed to hold money intended for use during a person's retirement years. These accounts typically offer tax advantages, such as tax-deferred growth or tax-free withdrawals, under specific conditions set by government regulations. The primary purpose is to encourage and facilitate long-term saving for life after one stops working.

Usage

A "retirement account" is a formal financial product. You open, contribute to, manage, and eventually withdraw from a retirement account. The term is often modified by the specific type of plan (e.g., an employer-sponsored retirement account).

Examples
  • It's important to start contributing to a retirement account early in your career to benefit from compound growth.
  • Her company offers a matching contribution to the employee retirement account.
  • Withdrawing funds from a retirement account before age 59½ may result in a penalty.
  • He consolidated his savings into a single individual retirement account (IRA).
Advanced Usage
  • Qualified retirement account: A specific legal term for accounts that meet the requirements of the Internal Revenue Code (IRC) for favorable tax treatment.
  • Retirement account beneficiary: The person or entity designated to receive the assets in the account upon the account holder's death.
Variants and Related Words
  • Individual Retirement Account (IRA): A common type of retirement account that an individual can establish independently of an employer.
  • 401(k) / 403(b): Types of employer-sponsored retirement accounts common in the United States.
  • Pension plan: A different type of retirement benefit where an employer promises a specified payment upon retirement, not typically referred to as an "account" in the same way.
  • Superannuation account (common in Australia/NZ): The equivalent term for a retirement savings account.
Synonyms
  • Pension account (context-dependent)
  • Retirement savings plan
  • Tax-advantaged savings account (broader term, but often used in this context)
Related Phrases
  • Retirement account rollover: The process of moving funds from one qualified retirement account to another without incurring taxes or penalties.
  • Retirement account distribution: A withdrawal or payout of funds from the account.
retirement account

A woman reviews her retirement account statement at the kitchen table.

Noun
  1. a plan for setting aside money to be spent after retirement

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