A bond that does not pay a periodic interest payment, but trades a deep discount. Profits are earned at maturity when the bond is redeemed for its full face value. […]
Traditional Individual Retirement Account (IRA)
A plan that individuals may establish to save for retirement. If a taxpayer meets certain requirements, contributions are deductible from earned income in the calculation of federal and state income […]
Taxable Income
The amount of income that is used to calculate income tax due. It is determined by subtracting any deductions, exemptions, or other adjustments from gross income.
Tax-Exempt Bonds
The interest from bonds issued by states, cities, or other government agencies may exempt from federal income taxes under certain circumstances. The interest from these bonds may also be exempt […]
Tax-Deferred
Investment earnings that accumulate tax-free until they are withdrawn. This includes earnings from interest, dividends, and capital gains.
Single-Life Annuity
An annuity that only provides payments to one person. Payments cease when the annuitant dies, and there are no rights of payment to any survivor.
Simplified Employee Pension Plan (SEP)
A retirement plan that can be establish by an employer or self-employed individuals. An employer makes contributions to each eligible employee’s SEP IRA and are allowed a tax deduction for […]
Self-Employed Retirement Plans
There are several types of retirement plans that can be established by a self-employed individual. They include, but are not limited to, SEP IRAs, SIMPLE 401(k)’s, or self-employed 401(k)’s.
