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Roth IRA: Plan may be started any year you earn taxable income. Money can be deposited up to certain annual limits and is not tax deferrable. Earnings, however, are tax free.
Simple IRA: an IRA plan for employees of small companies. You may contribute up to certain annual limits and your employer will make matching contributions up to certain limits.
Social Security: the principle or practice or program of public provision for the economic security and social welfare of an individual and his or her family; the United States government program established in 1935 to include old-age assistance.
Traditional IRA: This retirement plan allows anyone regardless of amount of income to contribute up to specific annual limits.
Trust: An arrangement, usually established by a written document,
to provide for the management and disposition of assets. It normally involves three parties: the person who establishes the trust (sometimes called a donor, grantor, settlor, or trustor), a trustee, and one or more beneficiaries.
Trustee: An adult individual or financial institution that is designat- ed to be responsible for the administration of a trust. There may be more than one trustee (co-trustees), and an individual and a financial institution may serve as co-trustees.
Will: A legally enforceable declaration of how a person wishes his or her property to be distributed after death. In a will, a person can also recommend a guardian for his or her children. Also known as a "will and testament.”
Glossary