401-k plan (Meaning)
401-k plan (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from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments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 plan
No Synonyms and anytonyms found
401-k plan Sentence Examples
- Many companies offer a 401(k) plan as part of their employee benefits package to help workers save for retirement.
- Employees can contribute a portion of their salary to their 401(k) plan, and some employers match these contributions up to a certain percentage.
- It's important for individuals to carefully review the investment options within their 401(k) plan to make informed decisions about their retirement savings.
- The 401(k) plan is a tax-advantaged retirement savings vehicle, allowing contributions to grow tax-free until withdrawal.
- Participants in a 401(k) plan have the flexibility to choose between traditional and Roth options, each with its own tax implications.
- Many financial experts recommend maximizing contributions to a 401(k) plan to take full advantage of employer matches and tax benefits.
- Early withdrawals from a 401(k) plan may be subject to penalties, so it's crucial to understand the rules governing distribution.
- Individuals can roll over funds from a previous employer's 401(k) plan into a new employer's plan or an individual retirement account (IRA).
- Employers may provide educational resources to help employees understand the features and benefits of their 401(k) plan.
- A well-managed 401(k) plan is a valuable tool for building a secure financial future, and participants should regularly review and adjust their contributions and investment allocations.
FAQs About the word 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
No synonyms found.
No antonyms found.
Many companies offer a 401(k) plan as part of their employee benefits package to help workers save for retirement.
Employees can contribute a portion of their salary to their 401(k) plan, and some employers match these contributions up to a certain percentage.
It's important for individuals to carefully review the investment options within their 401(k) plan to make informed decisions about their retirement savings.
The 401(k) plan is a tax-advantaged retirement savings vehicle, allowing contributions to grow tax-free until withdrawal.
