401(k)
A 401(k) is a retirement savings plan that lets you invest a portion of each paycheck before taxes are deducted depending on the type of contributions made.
(short “what is X?”; 150–400 words)
Understanding the news starts with understanding the language used to describe it.
Our Definitions page serves as a living glossary of key terms, phrases, and concepts that often appear in discussions about government, law, policy, and current events.
Each definition is short, straightforward, and written for clarity — no jargon, no bias. By breaking down complex language into plain English, we help readers grasp not just what’s being said, but what it means.
Because true understanding begins with defining the words that shape our world.
A 401(k) is a retirement savings plan that lets you invest a portion of each paycheck before taxes are deducted depending on the type of contributions made.
Amortization is the gradual repayment of a loan through regular payments that cover both interest and the loan principal.
Annual Percentage Rate (APR) is the yearly cost of borrowing money, expressed as a percentage.
Artificial Intelligence (AI) refers to computational systems and algorithms designed to perform tasks that typically require human intelligence
A bond is an investment where you lend money to an organization for a set period in exchange for regular interest payments.
A capital gain is the increase in value of an asset between the time you buy it and when you sell it for a higher price.
A chatbot is a software application that interacts with users through natural language, using predefined rules or AI models.
Classified information is official government data that is restricted from public access to protect national security.
Compound interest is the process where interest is calculated not just on the initial amount (principal), but also on the interest that has already been added to the account or loan.
A credit score is a three-digit number used by lenders to estimate how likely you are to repay borrowed money on time.
A DPA is a legal mechanism in which a prosecutor agrees to suspend criminal prosecution of a defendant (often a corporation), on condition that the defendant meets certain requirements during a specified period.
The Eighth Amendment limits government power in setting bail, levying fines, and imposing punishments.
Executive order is an official directive issued by the President of the United States to manage operations within the federal government.
The Fifth Amendment provides multiple protections: grand jury indictment, double jeopardy, self-incrimination, due process, and eminent domain.
The First Amendment protects five core freedoms: religion, speech, press, assembly, petition.
The Food and Drug Administration (FDA) oversees the safety, efficacy, and truthful labeling of a wide range of products including human and animal drugs, vaccines, medical devices, food, cosmetics, and tobacco.
“Food stamps” was the name for a federal food assistance program used from 1939 until it was rebranded as SNAP (Supplemental Nutrition Assistance Program) in 2008.
The Fourth Amendment establishes the legal standard for searches and seizures by the government.
Generative AI refers to a class of AI systems designed to produce new content rather than just analyzing or classifying existing data.
Indictment is a formal written accusation issued by a grand jury stating that there is enough evidence to charge a person with a crime and proceed to trial.
An Individual Retirement Account (IRA) is a tax-advantaged savings account that individuals can use to save for retirement.