401-k (Meaning)
401-k (n)
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from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments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 & Antonyms of 401-k
No Synonyms and anytonyms found
401-k Sentence Examples
- Many employees contribute to a 401(k) retirement savings plan as part of their benefits package.
- The employer offers a matching contribution to the employees' 401(k) accounts, encouraging long-term savings.
- It is advisable to regularly review and adjust your investment portfolio within your 401(k) for optimal returns.
- The maximum annual contribution limit for a 401(k) is determined by tax regulations and can change from year to year.
- A 401(k) allows individuals to save for retirement on a tax-advantaged basis, providing potential growth over time.
- Some employers offer educational seminars to help employees make informed decisions about their 401(k) investments.
- Employees may choose between traditional and Roth 401(k) options, each with its own tax implications.
- Early withdrawals from a 401(k) account may be subject to penalties, so it's essential to understand the rules.
- The 401(k) account offers flexibility, allowing individuals to take control of their retirement planning.
- Financial advisors often recommend diversifying assets within a 401(k) to minimize risk and maximize potential returns.
FAQs About the word 401-k
a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer; contributions are made from your salary
No synonyms found.
No antonyms found.
Many employees contribute to a 401(k) retirement savings plan as part of their benefits package.
The employer offers a matching contribution to the employees' 401(k) accounts, encouraging long-term savings.
It is advisable to regularly review and adjust your investment portfolio within your 401(k) for optimal returns.
The maximum annual contribution limit for a 401(k) is determined by tax regulations and can change from year to year.
