401(k) plan
Definition
Employer-sponsored employee benefit scheme supported by the US tax code. Under this plan, a limited amount of an employee's before-tax salary is deposited into tax-deferred retirement plan where it accumulate free of tax. Withdrawals by the employee before he or she reaches the age of 59½ years attract penalties except in certain cases of hardship.
401(k) plan is in the Accounting & Auditing, Banking, Commerce & Finance, Corporate, Commercial, & General Law and HR, Teams, & Training subjects.
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