Personal Finance Lesson 2-2

A retirement account offered by employers to employees whereby employees contribute pre-tax amounts and the employer can contribute matching amounts into the employees' accounts.

• Pay Period

• FICA

• 401(k)

• Deduction

An amount of money an employer withholds from an employee's paycheck, including items like taxes, health insurance premiums, and 401(k) contributions.

• Pension

• FICA

• 401(k)

• Deduction

The Federal Insurance Contributions Act (FICA) is a U.S. law that requires employers to withhold a payroll tax on employees' income, and for the employer to contribute an equal amount, in order to fund the Social Security and Medicare programs.

• FICA

• Deduction

• Pension

• Personal Gross Income

A recurring interval of time an employee is paid, often weekly, bi-weekly, semi-monthly, or monthly

• Deduction

• FICA

• Pay Period

• Personal Net Income

An employer funded plan that provides for a defined amount of income for employees after they retire from the company.

• Pension

• Personal Gross Income

• Personal Net Income

• Pay Period

The amount of money an employee is paid for earnings in a given time period before any deductions are made.

• FICA

• Pay Period

• Pension

• Personal Gross Income

The amount of money an employee is paid for earnings in a given time period after all deductions are made.

• FICA

• Pay Period

• Personal Gross Income

• Personal Net Income