Business Terms Glossary
401(K) Plan
Definition of 401(K) Plan
A 401(K) Plan is a qualified retirement plan that allows employees to make pre-tax contributions. These plans are governed by Section 401(k) of the Internal Revenue Code.
Employee contributions reduce their salary but the money is available to the employee when they retire and, subject to some restrictions, there is no tax on any interest earned.
In many cases, the employer will match employee contributions up to a specified level. Offering a 401(K) plan is a valued employee benefit that helps small business owners recruit and retain talented employees.
401(K) Plan References On This Site
These Gaebler.com articles mention this glossary term:
- 401k and Flexible Spending Accounts - Tax-deferred income sheltered under 401k plans takes a variety of forms including employer contributions, employee...
- Four Retirement Plan Options for Small Businesses - Although 401(k) plans are most effective for companies with 25 or more...
- Retirement Myths - Don't rely on your company's 401k plan and pension plan. Most companies don't even have...
- More End of Year Tax Tips to Achieve Lower Taxes - You can't procrastinate on that one! The same is true for a solo 401(k) plan, a great retirement plan for a one-man or...
- Tips on Starting a Business in College - They will plead with you to focus on your studies and continue to work hard to get good grades in school so you can get a good job and hopefully get benefits and a 401k plan and be stressed out for the rest of your...
- How to Set Up a 401(k) Plan - Most small business owners find the most cost-efficient way to establish and manage a 401(k) plan is to utilize the services of an outside professional...
- The Sarbanes-Oxley Act: Title III—Blackout Periods - Often times, when a company undergoes administrative changes in its 401k plan, employees are blocked from selling or purchasing stock in...
- Retirement Myths - Don't rely on your company's 401k plan and pension plan. Most companies don't even have...
- 401k and Flexible Spending Accounts - Tax-deferred income sheltered under 401k plans takes a variety of forms including employer contributions, employee...
- Myths About 401(k) Plans - But the majority still seem to think that 401(k) plans aren't feasible -- probably because of one of the...
- Four Retirement Plan Options for Small Businesses - Although 401(k) plans are most effective for companies with 25 or more...
- More End of Year Tax Tips to Achieve Lower Taxes - You can't procrastinate on that one! The same is true for a solo 401(k) plan, a great retirement plan for a one-man or...
- Tips on Starting a Business in College - They will plead with you to focus on your studies and continue to work hard to get good grades in school so you can get a good job and hopefully get benefits and a 401k plan and be stressed out for the rest of your...
- The Sarbanes-Oxley Act: Title III—Blackout Periods - Often times, when a company undergoes administrative changes in its 401k plan, employees are blocked from selling or purchasing stock in...
- How to Set Up a 401(k) Plan - Most small business owners find the most cost-efficient way to establish and manage a 401(k) plan is to utilize the services of an outside professional...
- Myths About 401(k) Plans - But the majority still seem to think that 401(k) plans aren't feasible -- probably because of one of the...
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