401(k) Hear it!

401(k) Definition

401(k) (fôr′ō′wun′kā′)

noun pl. 401(k)s or 401(k)'s

  1. 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
  2. such an account

Etymology: < designation of section of U.S. Internal Revenue Code on which it is based