/fawr"oh'wun"kay", fohr"-/, n.a savings plan that allows employees to contribute a fixed amount of income to a retirement account and to defer taxes until withdrawal.
* * *▪ financein the United States, a retirement savings program organized by employers but funded primarily by workers through paycheck deductions. Because employees generally do not make withdrawals from the fund until after they have retired, the 401(k) is considered a deferred compensation plan. As a result, the worker is not taxed on any earnings or gains made in the account until withdrawals begin. Moreover, a certain proportion of the 401(k) contribution can be made before taxes have been deducted from the employee's paycheck.Once a company has established a 401(k) plan, employees are offered the option of contributing a portion of their earnings toward the retirement plan. Many employers match a certain percentage of each employee's contribution. Most plans offer the option of investing among a number of stock, bond, and money market funds. Some companies encourage employees to invest their 401(k) funds in the company's own stock, but this practice has been criticized as risky, especially when too much retirement money is invested in a single stock. After the enactment of the Employee Retirement Income Security Act in 1974, traditional pension plans were limited to investing no more than 10 percent of pension fund assets in a single company's stock, but no such limits were placed on 401(k) investments.The plan developed from the 1978 reforms of the Internal Revenue Code meant to encourage savings rates in the United States. Its name is derived from a part of the code—section 401(k)—that permitted employees to set aside tax-deferred retirement funds. The first program was implemented in 1981, and by the year 2000 more than three-fourths of American workers were participating in 401(k) plans. Many companies came to offer 401(k) plans in addition to, or in place of, traditional company-sponsored pension plans. The Internal Revenue Service limits the amount that a person may contribute to his or her 401(k) plan in a given year.
* * *
Look at other dictionaries:
401(k) — 401(k) наиболее популярный пенсионный план (накопительный пенсионный счёт) частной пенсионной системы в США. Свое название план получил по номеру статьи Налогового кодекса США (401(k)). Эта статья разрешила работникам вносить на свои личные … Википедия
401 av. J.-C. — 401 Années : 404 403 402 401 400 399 398 Décennies : 430 420 410 400 390 380 370 Siècles : VIe siècle … Wikipédia en Français
401 — 401(k) [fôr΄ō΄wun΄kā′] n. pl. 401(k)s or 401(k) s 〚< designation of section of U.S. Internal Revenue Code on which it is based〛 1. a type of retirement plan in which each eligible employee is allowed to put a percentage of wages or salary into a… … Universalium
401 — 401(k) [fôr΄ō΄wun΄kā′] n. pl. 401(k)s or 401(k) s [< designation of section of U.S. Internal Revenue Code on which it is based] 1. a type of retirement plan in which each eligible employee is allowed to put a percentage of wages or salary into … English World dictionary
401(k) — [ ,fɔr ou wʌn keı ] noun count in the U.S., a special account in which people can save some of the money they earn for their RETIREMENT without paying taxes on it … Usage of the words and phrases in modern English
401(k) — In the United States of America, a 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or… … Wikipedia
401 — Années : 398 399 400 401 402 403 404 Décennies : 370 380 390 400 410 420 430 Siècles : IVe siècle Ve siècle … Wikipédia en Français
401(k) — Le Plan 401(k) ou 401(k) est le système d épargne retraite des États Unis. Il tire son nom de la section 401(k) de l Internal Revenue Code (« code fiscal national »), texte principal du droit fiscal américain. Il est très répandu aux… … Wikipédia en Français
-401 — Années : 404 403 402 401 400 399 398 Décennies : 430 420 410 400 390 380 370 Siècles : VIe siècle av. J.‑C. … Wikipédia en Français
401 — Portal Geschichte | Portal Biografien | Aktuelle Ereignisse | Jahreskalender ◄ | 4. Jahrhundert | 5. Jahrhundert | 6. Jahrhundert | ► ◄ | 370er | 380er | 390er | 400er | 410er | 420er | 430er | ► ◄◄ | ◄ | 397 | 398 | 399 | … Deutsch Wikipedia