ADVERTISEMENT

Sponsored

What is a SEP IRA?

A SEP IRA is a retirement plan available to self-employed persons and small business owners. Contributions up to 25% of eligibile compensation or max of $51,000 (2013) to a SEP IRA are typically 100% tax deductible and earnings grow tax deferred....

What is Social Security?

Social Security is the comprehensive federal program of benefits providing workers and their dependents with retirement income, disability income, Medicare, Medicaid and other payments. The Social Security tax is used to pay for the program, which...

What is a Standard Deduction?

A standard deduction is a base amount of income that is not subject to tax and can be used to reduce a taxpayer's adjusted gross income (AGI). A standard deduction can only be used if a taxpayer does not choose the itemized deduction method of...

What is Stock?

Also known as "shares" or "equity," stock is a type of security issued by corporations to raise capital that entitles stock owners (shareholders) to partial ownership of the corporation. Most stocks are bought and sold on what is called an...

What is a Target-date Fund?

A target-date fund is a mutual fund comprised of a portfolio of mutual funds with a particular asset allocation based on a specific investing goal time frame that adjusts to become less risky over time. For example, a fund with a target date of 15...

What is a Tax Bracket?

A tax bracket is the rate at which an individual is taxed. Tax brackets are based on income levels so that individuals with lower income levels are taxed at a lower rate than individuals with higher income levels. Tax brackets serve as cutoff...

What is Tax-deferred?

Tax-deferred are investment earnings such as interest, dividends or capital gains that accumulate tax free until withdrawn. The most common types of tax-deferred investments include those in individual retirement accounts (IRAs), college savings...

What is Tax-deductible?

Tax-deductible is a description of a contribution or expense that can be subtracted from adjusted gross income to reduce the amount of income subject to tax. Tax authorities specify what can be deducted from gross income for the purpose of...

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

© Copyright DailyWorth 2014