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Employee Benefits > 401(K) Plan

The following information is about 401(K) Plan.

401(K) Plan Defined

A subtype of profit sharing plan that permits participants to elect to defer a portion of their salaries on a pre-tax basis. An employer may encourage participants’ salary deferrals by offering to match the deferrals with an employer contribution. 401(k) plans are subject to special rules and restrictions beyond those applicable to regular profit sharing plans.

This definition is in context to Employee Benefits. See more contextual defintions for 401(K) Plan.


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