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All of the property, assets, and debts left by a deceased person.
What is estate?
To leave or give property by will.
What is bequeath?
A dollar-value threshold over which estate taxes are required.
What is exemption amount?
A word that describes someone who dies without a legal will in place.
What is intestate?
A tax imposed on the sale of fuel.
What is fuel tax?
A rise in the general level of prices over time.
What is inflation
A professionally managed investment vehicle that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.
What is mutual fund?
A steady income given to a person (usually after retirement). Most pensions are created by an employer for the benefit of an employee. . Pensions are a form of deferred compensation, usually advantageous to the employee and employer for tax reasons. Many pensions also contain an insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries, while annuity income insures against the risk of longevity.
What is pension?
An individual retirement account that provides tax-free growth, with contributions to the account made post-tax. Roth IRAs may be opened through various investment options, including stocks or mutual funds.
What is Roth IRA?
A social insurance program funded through dedicated payroll taxes called the Federal Insurance Contributions Act (FICA). The Social Security Administration keeps track of all workers' earnings throughout their career. The amount of the monthly benefit to which a worker is entitled depends upon that person's earnings record and the age at which he or she chooses to begin receiving benefits.
What is Social Security?
Tax on the profit made by selling an asset that has increased in value, such as stocks or property.
What is capital gains tax?
An item that is subtracted from gross income on a tax return. There are many deductions, the most common of which include business expenses, charitable donations, medical expenses, property taxes, interest on mortgages or equity lines of credit, and tax advice.
What is deduction?
Income that is available after all necessities (food, shelter, etc.) have been paid for.
What is discretionary income?
The total income of an individual or couple filing jointly or separately, including all wages, rental income, and interest on investments (except tax-deferred investments).
What is gross income?
A tax imposed by the federal government on any money earned during a fiscal year.
What is income tax?
A form of taxation where people who earn more are charged a higher percentage of their income than people with lower incomes.
What is progressive taxes?
A tax paid by owners of property, based on the estimate of the property's value.
What is property tax?
Income after all deductions and exemptions have been subtracted. Using a tax table, taxes are figured based on the taxable income.
What is taxable income?
Amounts subtracted directly from the taxes due, not from income as deductions are. There are many types of tax credits, including the Earned Income Tax Credit and the Child Tax Credit.
What is tax credits?
The act of preparing for passing assets and decision-making responsibility on to heirs or other individuals in case of death or incapacitating injury or illness.
What is estate planning?
A type of investment that guarantees payments of specific amounts at specific times. Annuities come in two forms: fixed and variable. Fixed annuities are like CDs that pay a set rate of return. Variable annuities allow you to invest in stocks and bonds, and the rate of return depends on how your investments perform.
What is annuity?
A company retirement plan, such as a pension plan, in which a retired employee receives a specific amount based on salary history and years of service, and in which the employer bears the investment risk. Contributions may be made by the employee, the employer, or both.
What is defined benefit plan?
A company retirement plan, such as a 401(k) plan or 403(b) plan, in which the employee elects to defer some amount of his or her salary into the plan, and he or she bears the investment risk.
What is defined contribution plan
A type of employer-sponsored defined contribution retirement plan under section 401(k) of the Internal Revenue Code. It allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of wages paid directly, or deferred, into a 401(k) account.
What is 401(k)?
A tax-deferred retirement plan account that provides some tax advantages for retirement savings in the United States.
What is individual retirement account?