tax advantaged account
Any savings or investment account where the government gives you a special tax break, like not taxing your earnings or letting you put money in before taxes are taken out.
Where it is explained in full
Whole life insurance: what it is, who uses it, and the arithmetic nobody shows you. A life insurance policy that also holds a savings account inside it. It is sold to almost everyone and it fits a few people well. This page explains how it works and how to tell which you are, and it never tells you what to buy.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- ABLE account
A special savings account created by federal law that lets people with disabilities save money without losing government benefits or paying tax on the growth.
- accounting software
This is a program that records the money moving through a business, such as sales, bills, and payments. It sorts each item into a category and builds reports showing what the business earned and spent.
- Custodial account (UTMA/UGMA)
An account you manage for a child that becomes theirs outright at adulthood.
- health savings account
A special bank account the government allows you to open so you can save money specifically for medical costs and get tax benefits while doing it.
- High yield savings account
A savings account paying a competitive rate, usually online.
- mental accounting
This is the habit of treating money differently depending on where it came from or what you plan to use it for. For example, people may spend a tax refund freely but guard money in a savings jar, even though a dollar is worth the same either way.
- retirement account
A special savings account the government created to help people save money for when they stop working. It comes with tax benefits that a regular bank account does not have.
- tax advantaged
A way of describing an account that gets special treatment from the IRS to reduce the taxes you owe. The government designed these accounts to encourage people to save for things like retirement or medical costs.
Ask about tax advantaged account
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