employee savings plan

Definition

Type of savings account offered through an employer that allows employees to contribute money to the account which is then pool together and invested. An employee savings plan has similar characteristics of a 401(k) plan. The employer may match the contribution that the employee makes. The employer may require that the individual be employed for a certain amount of time before it starts matching contributions.
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Employee Retirement Income Security Act of 1974 employee share ownership trust (ESOT)