Accounts & TaxFIRE glossary
Defined term401(k)
Employer-sponsored retirement account. Contributions are pre-tax (traditional) or post-tax (Roth). Look for employer match — that's free money.
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Related terms
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Solo 401(k)
A 401(k) for self-employed people with no employees. Allows both employee and employer contributions, supports Roth, and often beats a SEP IRA for max contribution room.
Roth Conversion Ladder
A tactic to access retirement money before 59½. Convert Traditional → Roth each year after retiring; after a 5-year wait, the converted amount can be withdrawn penalty-free.
Taxable Brokerage
An investment account with no tax advantages but no withdrawal restrictions. Essential bridge for early retirees who need to fund expenses before 59½.
Mega Backdoor Roth
If your 401(k) plan allows after-tax contributions and in-service conversions, you can stuff up to ~$46K/year extra into Roth accounts. The holy grail for high-income FIRE seekers.
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