401(k) plan: Difference between revisions
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The term 401(k) refers to subsection 401(k) of the US Internal Revenue Code. | The term 401(k) refers to subsection 401(k) of the US Internal Revenue Code. | ||
A 401(k) pension plan is a defined contribution plan where an employee can make contributions from their salary. | A 401(k) pension plan is a defined contribution plan where an employee can make contributions from their salary. | ||
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The contributions go into a tax-advantaged 401(k) account, with the employee often choosing the investments based on options provided under the plan. | The contributions go into a tax-advantaged 401(k) account, with the employee often choosing the investments based on options provided under the plan. | ||
In some plans, the employer also makes contributions such as matching the employee’s contributions up to a certain percentage. Some 401(k) plans have mandatory employer contributions. | In some plans, the employer also makes voluntary contributions such as matching the employee’s contributions up to a certain percentage. | ||
Some 401(k) plans have mandatory employer contributions. | |||
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* [[Contributions]] | * [[Contributions]] | ||
* [[Defined contribution pension scheme]] | * [[Defined contribution pension scheme]] | ||
* [[Internal Revenue Service]] | * [[Individual Retirement Arrangement]] (IRA) | ||
* [[Internal Revenue Service]] (IRS) | |||
* [[Longevity Annuity]] | |||
* [[Occupational pension scheme]] | * [[Occupational pension scheme]] | ||
* [[Qualified Longevity Annuity Contract]] | |||
* [[Required Minimum Distribution]] | |||
* [[Stakeholder pension scheme]] | * [[Stakeholder pension scheme]] | ||
* [[United States]] | * [[United States]] | ||
==External link== | |||
*[https://www.irs.gov/retirement-plans/401k-plans 401(k) Plans - IRS] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 21:41, 15 August 2022
Pensions - defined contribution - US.
The term 401(k) refers to subsection 401(k) of the US Internal Revenue Code.
A 401(k) pension plan is a defined contribution plan where an employee can make contributions from their salary.
The contributions go into a tax-advantaged 401(k) account, with the employee often choosing the investments based on options provided under the plan.
In some plans, the employer also makes voluntary contributions such as matching the employee’s contributions up to a certain percentage.
Some 401(k) plans have mandatory employer contributions.
See also
- Annuity
- Contributions
- Defined contribution pension scheme
- Individual Retirement Arrangement (IRA)
- Internal Revenue Service (IRS)
- Longevity Annuity
- Occupational pension scheme
- Qualified Longevity Annuity Contract
- Required Minimum Distribution
- Stakeholder pension scheme
- United States
