401(k) Definition

fôrō-wŭn-kā
401-k
noun
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.
American Heritage
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.
Webster's New World
Such an account.
Webster's New World
Synonyms:
  • 401(k) plan