Locked In


DEFINITION of 'Locked In'

A situation where an investor is unwilling or unable to exit a position because of the regulations, taxes or penalties associated with doing so. This may be an investment vehicle, such as a retirement plan, which can not be accessed until a specified retirement date.


If there is an increase in value of stocks held by an individual they will be subject to a capital gains tax (with some exceptions). To reduce their tax burden, an investor could shelter these gains in a defined retirement account. The individual is considered locked in because if a portion of this investment is withdrawn prior to maturity the owner will be taxed at a higher rate than if they waited.

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  3. 401(k) Plan

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  4. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  5. Capital Gains Tax

    A type of tax levied on capital gains incurred by individuals ...
  6. Market

    A medium allowing buyers and sellers of a specific good or service ...
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