English - English
Definition of 401 in English English dictionary
- 401(k)
- A retirement investment plan that allows an employee to put a percentage of earned wages into a tax-deferred investment account selected by the employer. Also called salary reduction plan
- 401-k plan
- 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from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn at which point they can be converted into and IRA; funds can be transfered if you change employers and you can (to some extent) manage the investments yourself