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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] Periodical employee contributions come directly out of their paychecks, and may be matched by the employer.
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Automatic Data Processing, Inc. ( ADP) is an American provider of human resources management software and services, headquartered in Roseland, New Jersey . History [ edit] In 1949, Henry Taub founded Automatic Payrolls, Inc. as a manual payroll processing business with his brother Joe Taub.
The plan is similar to a 401 (k) plan, but with lower contribution limits and simpler (and thus less costly) administration. Although it is termed an IRA, it is treated separately. Conduit IRA – a traditional IRA funded exclusively with a transfer from a qualified plan, such as a 401 (k) plan.
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