retirement savings plan
Noun: A retirement savings plan is a structured financial arrangement designed to help an individual systematically set aside and invest money during their working years, with the specific goal of providing income after they stop working (retire).
This term is used to describe the overall strategy or specific account (like a 401(k) or IRA) used to accumulate funds for retirement. It emphasizes the planned, long-term nature of saving for this life stage. - Individuals are encouraged to start contributing to a retirement savings plan early in their career. - The company offers a matching contribution to its employees' retirement savings plan. - Reviewing your retirement savings plan annually with a financial advisor is a good practice.
- Qualified Retirement Savings Plan: A specific type of plan that meets Internal Revenue Service (IRS) requirements, offering tax advantages to the saver.
- Contributions to a qualified retirement savings plan may reduce your taxable income for the year.
- Retirement Plan: A broader term that can include pensions, savings plans, and other arrangements for post-work income.
- Pension Plan: A type of retirement plan typically funded by an employer, promising a defined benefit payout upon retirement.
- Defined-Contribution Plan: A common type of retirement savings plan where the final benefit depends on contributions and investment performance (e.g., a 401(k)).
- Pension Scheme (more common in British English)
- Superannuation Plan (common in Australian English)
- To enroll in a retirement savings plan: The action of signing up to participate.
- New employees must enroll in the retirement savings plan within their first 90 days.
- Retirement savings plan beneficiary: The person designated to receive the plan's assets if the account holder dies.
- It is important to keep your retirement savings plan beneficiary information up to date.
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a plan for setting aside money to be spent after retirement
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