The Retirement Corporation of America


Glossary


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Tax Bracket
The range of taxable income that is taxed at a certain rate. Brackets are expressed by their marginal rate.

Tax Deferred
Interest, dividends, or capital gains that grow untaxed in certain amounts or plans until they're withdrawn.

Taxable Income
The amount of income used to compute tax liability. It is determined by subtracting adjustments, itemized deductions or the standard deduction, and personal exemptions from gross income.

Total Return
The total of all earnings from a given investment, including dividends, interest, and any capital gain.

Trustee-to-Trustee Transfer
A method of transferring retirement plan assets from one employer's plan to another employer plan or to an IRA. One benefit of this method is that no federal income tax will be withheld by the trustee of the first plan.