nounpl. 401(k)s or 401(k)'s
- a type of retirement plan in which each eligible employee is allowed to put a percentage of wages or salary into a tax-deferred account that typically offers a variety of savings and investment options
- such an account
Origin of 401(k)from designation of section of United States Internal Revenue Code on which it is based
Also written 401(K), 401K
A retirement investment plan that allows an employee to put a percentage of earned wages into a tax-deferred investment account selected by the employer. Also called salary reduction plan .