401-K PLAN

 I. (noun) 

Sense 1

Meaning:

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from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments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

Synonyms:

401-k; 401-k plan

Classified under:

Nouns denoting cognitive processes and contents

Hypernyms ("401-k plan" is a kind of...):

pension account; pension plan; retirement account; retirement plan; retirement program; retirement savings account; retirement savings plan (a plan for setting aside money to be spent after retirement)

Credits