401(k) Plan

A 401(k) plan is a defined-contribution, tax-advantaged retirement plan offered by many employers to their employees.
401(k) plan
401(k) plan

A 401(k) plan is a defined-contribution, tax-advantaged retirement plan offered by many employers to their employees. 

It is named after a section of the U.S. Internal Revenue Code. 

Employees can contribute to their 401(k) plans via automatic payroll deduction, and their employers can match some or all of those contributions. Contributions and earnings in 401(k) plans grow tax-deferred until withdrawn, after which they are taxed as ordinary income.

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