Relationships
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Parents |
FinancialAccount |
A formal banking, brokerage, or business relationship established to provide for regular services, dealings, and other financial transactions.
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Children |
DefinedContributionPlan | A company retirement plan, such as a 401(k) or 403(b), in which the employee elects to defer some amount of his/her salary into the plan and bears the investment risk. |
| IndividualRetirementAccount | A tax-deferred retirement account for an individual that permits individuals to set aside up to $2,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn. |
| ProfitSharingPlan | An arrangement in which an employer shares its profits with its employees. The compensation can be stocks, bonds or cash, and can be immediate or deferred until retirement. |
| SavingsPlan_408K | A simpler alternative to a 401(k) plan available only to companies with 25 or fewer employees, which gives employees the opportunity to make contributions to their SEP accounts with pre-tax dollars and reduce their current year's net income. |