Financial Planning for Generation X & Y Women
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Glossary of Financial Terms

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401 (k) Plan
A tax deferred retirement plan that some private corporations offer their employees. Contributions to the plan may be made through payroll deduction. The money you place into the account lowers your taxable income. The employer usually matches a portion of your contribution.
403 (b) Plan
A retirement plan similar to a 401 (k) plan that is offered by certain tax-exempt organizations, public schools, such as universities, certain ministers, and some charitable organizations, rather than corporations.