401(k) Plan

Business, Legal & Accounting Glossary

Definition: 401(k) Plan


401(k) Plan


Full Definition of 401(k) Plan


A defined contribution plan offered by a corporation to its employees, which allows employees to set aside tax-deferred income for retirement purposes, and in some cases employers will match their contribution dollar-for-dollar. Taking a distribution of the funds before a certain specified age will trigger a penalty tax. The name 401(k) comes from the IRS section describing the program.


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https://payrollheaven.com/define/401k-plan/
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401(k) Plan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 29, 2021 https://payrollheaven.com/define/401k-plan/.
Chicago Manual of Style (CMS):
401(k) Plan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/401k-plan/ (accessed: November 29, 2021).
American Psychological Association (APA):
401(k) Plan. PayrollHeaven.com. Retrieved November 29, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/401k-plan/

Definition Sources


Definitions for 401(k) Plan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th November, 2021 | 0 Views.