401(k)

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noun \ˌfȯr-(ˌ)ō-(ˌ)wən-ˈkā\

Definition of 401(k)

  1. :  a retirement account to which employee and employer contribute, on which taxes are deferred until withdrawal, and for which the employee usually selects the types of investments

Origin and Etymology of 401(k)

from the section of the Internal Revenue Code that established it


401(K) Defined for English Language Learners

401(k)

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noun

Definition of 401(k) for English Language Learners

  • : a method by which the workers in a company can save money for their retirement by having an amount of money saved from their paychecks over a long period of time


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