401-k

401(k)

[fawr-oh-wuhn-key, fohr]
noun
a savings plan that allows employees to contribute a fixed amount of income to a retirement account and to defer taxes until withdrawal.
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Based on the Random House Dictionary, © Random House, Inc. 2014.
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WordNet
401-k

noun
a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments yourself [syn: 401-k plan
WordNet® 3.0, © 2006 by Princeton University.
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