|
|
What is a 401(k) Plan?
Posted: 11/02/2009
A retirement savings plan
sponsored by an employer is called a 401(k). In this type of savings plan,
employees can contribute a percentage of his or her pre-tax wages into the
company's 401(k) plan, up to a prescribed maximum. Annual contributions made to
a 401(k) plan, by the employees, will be excluded from that year's taxable
income. Many employers will match contribution made by the employee's into the
company 401(k), up to a designated percentage, allowing the savings to build
even faster.
 Share this information on Facebook
|