Do you feel overwhelmed by all the fancy retirement terms? 401k, 403b, Keough plan, Roth IRA and the list goes on and on. I feel like I need a retirement terminology glossary! Therefore, I decided to create one.
This page is dedicated to simplifying and curating retirement terminology all in one place. I’ll update this page with terms, definitions and abbreviations that you’ll encounter as you get organized for your retirement.
Wondering about a term?
Let me know of any new retirement terms that have you baffled. I’ll do the research and then post here.
Glossary of Retirement Terms
403b – According to Wikipedia, “In the United States, a 403(b) plan is a U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers, cooperative hospital service organizations, and self-employed ministers in the United States.”
457b – the balance website says; “A 457 plan or 457(b) plan is an employer-sponsored, tax-favored retirement savings account. This type of plan is offered to state and local government employees, including police officers, firefighters, and other civil servants. Some high-paid (or “top hat”) executives at certain nonprofits like hospitals, charities, and unions also get access to 457(b) plans.”
529 Plan – According to Vanguard, 529 savings plans are one of the most popular account types for saving for college. “They’re usually sponsored by states (just about every state has one) and they are managed by mutual fund companies. You can start saving for a child, grandchild, other family member, friend—even yourself. Use the account to pay for a wide variety of eligible schools, including colleges, universities, graduate school, and trade or technical schools. You can also use the money to pay for room and board, fees, books, and other expenses.”
FIRE – Financial Independence, Retire Early. According to Dave Ramsey, ” The goal is to save and invest very aggressively—somewhere between 50–75% of your income—so you can retire sometime in your 30s or 40s.”
Keogh Plan – “A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit or defined-contribution plan, although most plans are set as defined contribution.” according to Investopedia.