401(k)
nounUS /fɔɹ.oʊ̯.wʌn.keɪ̯/
Etymology From section 401(k) of the US Internal Revenue Code, which provides for such accounts.
1
US A tax-qualified, defined-contribution pension account.
- Entrepreneurs have responded enthusiastically: Solo 401(k) assets now stand at $2.5 billion, and could hit $90 billion by 2012. It's easy to see why the plans are becoming so popular. As with ordinary 401(k)s, as well as SEP-IRAs designed for the self-employed, individual 401(k)s allow you to invest a portion of your income on a pretax basis—and your contributions grow tax-deferred.2005 March 1, Penelope Wang, “A 401(k) of Your Own”, in CNN Money, archived from the original on 01 Apr 2025:
- John Fuchs was checking his 401(k) account online one afternoon when he saw something that seemed amiss.2006 April 23, Walter Hamilton, Kathy M. Kristof, Josh Friedman, “From the Archives: Fees Eat Away at Employees’ 401(k) Nest Eggs”, in Los Angeles Times:
1 more example
- Contribute 10 percent of your salary each month to your 401(k), and you're good. Start at age 25 making $50,000 a year, and earn a 3 percent annual raise until retirement.2008 January–February, Steve Calechman, “5 Things You Can Stop Worrying about (And 5 Others that Should Trouble You Deeply)”, in Men's Health, volume 23, number 1, →ISSN, page 148: