Definition of the noun 401-k
What does 401-k mean as a name of something?
- a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments yourself
- lexical domain: Cognitive Processes - nouns denoting cognitive processes and contents
- synonym of 401-k: 401-k plan
- more generic terms: pension account / pension plan / retirement account / retirement plan / retirement program / retirement savings account / retirement savings plan = a plan for setting aside money to be spent after retirement
401-k a.k.a. 401(k): In the United States, a 401 plan is the tax-qualified, defined-contribution pension account defined in subsection 401 of the Internal Revenue Code. Under the plan, retirement savings contributions are provided by an employer, deducted from the employee's paycheck before taxation, and limited to a maximum pre-tax annual contribution of $17,500.
- also known as 401
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