Glossary

The words your benefits paperwork throws at you — translated into human. One line each.

401(k)Retirement

A retirement savings account offered through your employer. Money comes out of your paycheck before you ever see it, and it grows for your future self.

Employer matchRetirement

Free money your employer adds to your 401(k) when you contribute — but only up to a limit. If you contribute less than the limit, you leave free money behind.

VestingRetirement

How long you must stay at a company before the employer's contributions to your retirement account are fully yours to keep. Your own contributions are always 100% yours.

HDHPHealthcare

High-Deductible Health Plan. A health insurance plan with lower monthly payments but a higher amount you must pay yourself before insurance kicks in.

HSAHealthcare

Health Savings Account. A special savings account paired with an HDHP where you can set aside pre-tax money for medical costs — and it can even grow like an investment account.

PPOHealthcare

Preferred Provider Organization. A type of health plan that lets you see almost any doctor without a referral, usually in exchange for higher monthly payments.

PremiumHealthcare

The amount you pay every month just to have health insurance — whether or not you ever visit a doctor.

DeductibleHealthcare

The amount you must pay out of your own pocket each year before your health insurance starts paying its share.