Know Your Accounts
This is the most common employer-sponsored retirement plan in the U.S.
What is a 401(k)?
This is the maximum employee contribution limit for a 401(k) in 2025 for those under age 50.
What is $23,000?
IRA stands for this.
What is Individual Retirement Account?
This is the general rule: the younger you are, the more of your portfolio can be in this type of investment.
What are stocks or equities?
This is the job title for the licensed individual who assist you with investments or retirement planning.
What is a financial advisor?
A traditional IRA allows you to do this with your income taxes, depending on eligibility.
What is deduct contributions from taxable income?
Most 401(k) plans are governed by this federal law.
What is ERISA?
The contribution limit for IRAs in 2025 for individuals under age 50 is this.
What is $7,000?
This is a collection of stocks or bonds designed to track a specific market index, such as the S&P500.
What is an index fund?
This age is commonly cited as the “full retirement age” for Social Security Benefits.
What is age 67?
This type of retirement account is designed for self-employed individuals and small business owners.
What is a SEP IRA?
This is the term for when your employer adds funds to your 401(k).
What is a match or employer contribution?
Small businesses who do not want the expense of a 401(k) plan often set up this type of IRA.
What is a SIMPLE IRA?
This type of fund automatically adjusts asset allocation as you approach retirement or as you get older.
What is a target-date fund?
This product is the only product in financial services that can guarantee income for life.
What is an annuity?
This account grows tax-free and allows for tax-free withdrawals.
What is a Roth IRA?
You are generally penalized this percentage by the IRS for withdrawing from a 401(k) before age 59.5.
What is 10%?
A non-spousal beneficiary has the option to set up this type of IRA upon the death of the owner.
What is an Inherited IRA?
This term describes the practice of spreading investments across different asset classes.
What is diversification?
Retirees often refer to their overall risk tolerance as this.
What is conservative?
These retirement accounts are typically offered by non-profit organizations and educational institutions.
What are 403(b) plans?
This bucket within the 401(k) account allows for post-tax contributions and tax-free withdrawals in retirement.
What is Roth 401(k)?
Prior to 2020, this is the age upon which withdrawals from IRA’s were mandatory.
What is age 70.5?
This is the term for the fee that a mutual fund charges the shareholder.
What is expense ratio?
This is the type of risk that erodes purchasing power over time.
What is inflation risk?