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. |
|
Investopedia explains 'Locked In'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 The individual is considered locked in because if a portion of this investment is withdrawn prior to maturity the owner will be taxed at a higher rate than if they waited. |
Related Definitions
Articles Of Interest
-
Tax Tips For The Individual Investor
We give you seven guidelines to help you keep more of your money in your pocket. -
Borrowing From Your Retirement Plan
Left with no alternative but to take money out from your retirement savings? Here are some guidelines. -
Lump Sum Versus Regular Pension Payments
If you're about to retire, you may be facing this dilemma soon. Find out what your options are. -
20 Investments You Should Know
To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments. -
Know Your Stock Cost Basis
Understanding equity cost basis is critical for tracking the gains or losses of an investment. -
There Are New REITs On The Horizon
For investors, the surge in new REIT activity is providing some pretty interesting dividend opportunities. -
5 ETFs Flaws You Shouldn't Overlook
Despite their popularity, exchange traded funds have some drawbacks that investors should know about. -
How are capital gains and dividends taxed differently?
The U.S. tax code gives similar treatment to dividends and capital gains, although this will change slightly in 2013. Currently, ordinary dividends and short-term capital gains those on assets ... -
Dividend Facts You May Not Know
Discover the issues that complicate these payouts for investors. -
Simplify Your Portfolio
Faced with an overabundance of choices, many investors forget to stick to the basics.
Free Annual Reports