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Unlike traditional pension plans, in which the employer promises a specified monthly benefit at retirement, 401 (k) plans are funded by contributions deducted directly from the employee’s ...
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A 401 (k) match allows an employee to receive 'free' money from their employer for contributing to their retirement plan. The amount of the match can differ, and the employer contribution may be a ...
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In the United States, a 401 (k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401 (k) of the U.S. Internal Revenue Code. [1] Periodic employee contributions come directly out of their paychecks, and may be matched by the employer. This pre-tax option is what makes 401 (k) plans ...