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

If you have any questions, or disagree with the definition, or if you have anything to add then please do add your comments in the box below.

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