401-k Plan (Noun)
Meaning
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from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments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.
Classification
Nouns denoting cognitive processes and contents.
Examples
- The company offers a 401-k plan to its employees, with a generous matching contribution from the employer.
- She took advantage of her company's 401-k plan to save for retirement, contributing a portion of her salary each month.
- After leaving her job, she rolled over her 401-k plan into an IRA to maintain control over her retirement savings.
- The new employee was excited to learn that the company offered a 401-k plan with a wide range of investment options.
- He carefully managed his 401-k plan, adjusting his investment portfolio regularly to ensure he was on track to meet his retirement goals.