Tenants in Common (TIC)
Each owner's share - which can be unequal - passes to their own estate.
What is Tenants in Common (TIC)?
Co-owners can hold unequal percentages, and each can leave their share to anyone. At death a TIC share goes to the decedent's estate and through probate, not to the other owners. Common for business partners and unmarried co-owners.
Tenants in Common (TIC): a worked example
Two business partners own an account 70/30 as TIC; the 30% partner's share passes under their will.
More terms in Retirement Plans, Accounts & Trading
IRA Rollovers vs. Transfers
60-day rollovers are limited to one a year; direct transfers are unlimited.
10% Early Withdrawal Penalty & Exceptions
Distributions before 59 1/2 cost 10% extra, unless an exception applies.
Solo 401(k)
A 401(k) for a self-employed owner with no employees other than a spouse.
Defined Benefit Plan
A pension promising a specific benefit; the employer bears the investment risk.
Defined Contribution Plan
An individual account plan whose payout depends on contributions and returns.
403(b) Plan
A salary-deferral plan for public schools and 501(c)(3) nonprofits.
457 Plan
Deferred compensation for state and local government employees.
SIMPLE IRA
A low-cost plan for employers with 100 or fewer employees.
All Retirement Plans, Accounts & Trading terms · Full glossary