Financial Terms “#”


Financial Terms Dictionary

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10-K

A 10-K is a company annual report required by the Securities and Exchange Commission. It provides an overview of the business, risk factors, financial data, and management’s analysis. This is a useful tool for investors. A company’s 10-K can usually be found on the company website under the investor relations section.


1040 Form

Form 1040 is the United States tax form for individuals. This Internal Revenue Service (IRS) form is normally due on April 15 for the preceding tax year. For example, Form 1040 for the tax year 2021 is due April 15, 2022.


1099 Form

A 1099 Form is an Internal Revenue Service (IRS) form for reporting income other than salaries, wages, or tips. A W-2 form is for reporting salaries, wages, and tips.


401(k) Plan

A 401(k) plan is a retirement plan offered by employers to help employees save for retirement. Money saved by the employee is usually matched by the employer. The money saved goes in pretax. The account can grow without annual taxes until any amount is withdrawn years later. This is called a tax-deferred plan.


403(b) Plan

A 403(b) plan is a retirement plan offered by public schools and 501(c)(3) tax-exempt employers. A 403(b) plan helps employees save for retirement. Money saved by the employee is usually matched by the employer. The money saved goes in pretax. The account can grow without annual taxes until any amount is withdrawn years later. This is called a tax-deferred plan. A 403(b) plan is similar to a 401(k) plan.


501(c)(3) Organizations

A 501(c)(3) organization is a charitable organization that is a tax-exempt entity under the U.S. tax code.


Jeff Mankin

Jeff Mankin teaches financial literacy. His website is FinallyLearn.com.

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