Section 401(k) Plan
Section 401(k) Plan means:
a plan that allows an employee to contribute pretax earnings to a company pool, which is invested in stocks, bonds, or money market instruments; also known as a salary reduction plan. The contributions as well as earnings on them are taxed only when withdrawn. Annual contributions are limited to an indexed amount ($9,240 in 1994).
See 401(k) Plan.
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