Catch-up Contribution

You are entitled to make an annual catch-up contribution to your employer sponsored retirement savings plan and individual retirement account (IRA) if you're 50 or older. The catch-up amounts, which are larger for employer plans than for IRAs, increase from time to time based on the rate of inflation. You are eligible to make catch-up contributions whether or not you have contributed the maximum amount you were eligible for in the past. And if you participate in an employer plan and also put money in an IRA, you are entitled to use both catch-up options.Earnings on catch-up contributions accumulate tax deferred, just as other earnings in your account do. And when your primary contributions are tax deferred, so are your catch-up contributions.health savings accounts (HSAs), which you're eligible to open if you have a high deductible health plan (HDHP), allow catch-up contributions if you're at least 55. Your eligibility to make any contributions to an HSA ends when you turn 65.

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Definition / Meaning of

Homeowner's Insurance

Categories: Finance,

homeowners insurance is a contract between an insurance company and a homeowner to cover certain types of damage to the property and its contents, theft of personal possessions, and liability in case of lawsuits based on incidents or events that occur on the property. To obtain the insurance, which is based on the value of the home and what is covered in the policy, you pay a premium set by the insurance company. For each claim there's generally a deductible - a dollar amount - that you must pay before the insurer is responsible for its share. If you have a mortgage loan, your lender will require you to have enough homeowner's insurance to cover the amount you owe on the loan. Homeowner insurance policies vary substantially from contract to contract and from insurer to insurer as well as from region to region. Almost all policies have exclusions, which are causes of loss that are not covered. All of the coverage and exclusions of a particular policy are spelled out in the terms and conditions.

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Catch-up Contribution

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Homeowner's Insurance

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