Sunday, December 26, 2010

401(k) Plan

A 401(k) plan is an American retirement savings scheme. A 401(k) plan is basically an employer-sponsored retirement plan that allows employees to make tax-deferred contributions from their salaries and wages towards their retirement savings fund. There are also 403(b) and 457 plans which are set up to allow non-profit organisations and state/government workers to also make tax-deferred contributions.

Synonyms: 403(b) plan, 457 plan, Retirement savings scheme

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