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Definition of 401-k plan

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401-k plan

noun (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from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments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 (noun.cognition)
    Synonym: 401-k
    source: wordnet30

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