401(k) plan

noun

ˈfōr-ˌō-ˌwən-ˈkā-
: a retirement savings plan under which an employee may elect to have pretax contributions from his or her wages or salary deferred to a trust for investment

Word History

Etymology

after the section of the Internal Revenue Code that established it

Cite this Entry

“401(k) plan.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/401%28k%29%20plan. Accessed 26 Dec. 2024.

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