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Internal Revenue Code of 1986

The main body of federal tax law in the United States, which governs how taxes are collected and what rules apply to income, deductions, and other tax-related matters.

Qualified First-Time Homebuyer Distribution

A specific type of withdrawal from a retirement account (like an IRA or 401(k)) that is used to buy or build a first home, and which is exempt from the usual 10% early withdrawal tax penalty.

Taxable Year

The annual accounting period for keeping records and reporting income and expenses for tax purposes. For most individual taxpayers, this is the calendar year (January 1 to December 31).

IRA (Individual Retirement Account)

A type of savings account that allows individuals to save money for retirement with tax-deferred growth or tax-free withdrawals, depending on the type of IRA.

401(k)

A retirement savings plan sponsored by an employer that allows employees to contribute a portion of their salary to an individual account, often with employer contributions as well.