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definition of 401(k) planWhat is 401(k) plan?


A 401(k) is a retirement plan set up between a company and individual employee where the employee can contribute portions of their salary to on a pretax or post-tax basis. The employer then matches the contribution for eligible employees and may make arrangements for the 401(k) plan to include profit-sharing. Earnings in the 401(k) plan are tax-deferred.

  

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