retirement
401k
A tax-advantaged retirement savings plan offered by employers in the United States, where contributions are deducted from salary before taxes.
Example
"She contributed 10% of her salary to her 401k and her employer matched 5%."
💡 Memory Tip
401k is named after a section of the tax code. Just remember: it's your workplace retirement account.
Etymology
Named after section 401(k) of the Internal Revenue Code, added in 1978.
Common Misspellings
401(k)401-kfourohone k401 k
Related Terms
See Also
retirementtax-deferredemployer match