401(k) plan
DefinitionA defined contribution plan offered by a corporation to its employees, which allows employees to set aside tax-deferred income for retirement purposes, and in some cases employers will match their contribution dollar-for-dollar. Taking a distribution of the funds before a certain specified age will trigger a penalty tax. The name 401(k) comes from the IRS section describing the program.
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401(k) plan is ...
... part of the Retirement and Taxes subjects.
... part of the Retirement and Taxes subjects.
... an essential investing term.
Related Terms
457 plan, Cash or Deferred Arrangement, direct rollover, Employee Stock Ownership Plan, IRA rollover, rollover, Salary Reduction Simplified Employee Pension Plan, SARSEP, stock purchase plan, CODA
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