Section 401(k) Plan
In the United
States, a qualified cash or deferred profit-sharing or
stock-bonus plan which allows participants to decide how much
of their compensation is deferred. Participant contributions are
not taxable until the funds are
withdrawn,
and sponsor contributions
as
well
as investment earnings are also tax-deferred to
the participant.
Also called a Cash or Deferred
Arrangement (CODA).
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