A deferred compensation savings program in which employees invest part of their wages, sometimes with added employer contributions, to save on taxes. The 401(k) contributions are invested--usually according to the employee's direction--in savings accounts, money market funds, stocks, bonds and mutual funds. Income taxes on the amount invested and the amount earned are not due in the year earned, but when the employee withdraws money from the fund, usually at retirement.
See Topic: Employment Law Retirement & Elder Care
English-Chinese law dictionary (法律英汉双解大词典). 2013.
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401(k) plan — / fōr ˌō ˌwən kā / n [after the section of the Internal Revenue Code that established it]: a retirement savings plan under which an employee may elect to have pretax contributions from his or her wages or salary deferred to a trust for investment … Law dictionary
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401-k plan — noun 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from the employer; contributions are made from your salary before taxes and the funds grow tax free until they are withdrawn, at which… … Useful english dictionary
401 (k) plan — A savings plan with deferred compensation in which employees invest part of their wages (sometimes with employers also contributing) as a way of saving on taxes. The contributions are invested, usually as the employee chooses, in various… … Business law dictionary
401(k) plan — /ˌfɔ: əυ wʌn keɪ plæn/ noun US a personal pension plan arranged by an employer for a member of staff, invested in bonds, mutual funds or stock (the employee contributes a proportion of salary, on which tax is deferred; the employer can also make… … Dictionary of banking and finance
Savings Incentive Match Plan for Employees (SIMPLE) 401(k) plan — A tax deferred retirement savings plan similar to a conventional 401( k) plan, redesigned with specific rules to meet the needs of small employers. The Small Business Job Protection Act of 1996 created these plans for companies with fewer than… … Financial and business terms
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401(k) — In the United States of America, a 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or… … Wikipedia
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401(k) IRA matrix — This is a comparison between 401(k),Roth 401(k), and Traditional Individual Retirement Account and Roth Individual Retirement Account accounts. =Comparison [IRS Publication 4530 [http://www.irs.gov/pub/irs pdf/p4530.pdf] ] [IRS Retirement Article … Wikipedia