Investor Glossary-408(k) planInvestor Glossary-408(k) planInvestor Glossary-408(k) planInvestor Glossary-408(k) planInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

408(k) Plan

The HTML to link to this page
 

A 408(k) plan is an employer-maintained retirement plan, often referred to as a Simplified Employee Pension (SEP). "408(k)" actually refers to the part of the Internal Revenue Code that provides for SEP. In a 408(k) plan, the employer and the employee both contribute to a retirement account, though the employee is the actual owner of the account. This makes the 408(k) plan similar to a 401(k), but the 408(k) plan is actually a little simpler. It is only available to companies with under 25 employees - including the self-employed - and allows employees to contribute to their 408(k) plan with pre-tax dollars. A 408(k) plan does have annual contribution limits, but the employee pays no taxes on the employer's contributions. The contributions on all earnings in the 408(k) plan are tax-deferred until withdrawn.



Rate this 408(k) plan definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, FTSE, EBITDA, FICO score, 401a, reverse mortgage, liquidity ratio, average price per share, phantom income, cancelled check, 144a, retained earnings, inflation, class C shares, LIBOR, diluted share, Key Rate Duration, APR, command economy, minority interest, option premium, balance sheet, ex-dividend, VIX, stock split, risk management, debt service coverage, implied volatility, real GDP, deferred revenue, 1035 exchange, required rate of return, quality assurance, covered put, stock market close, ex-dividend date, labor relations, annual return, Zero Cost Collar, current ratio, dividends payable, 1031 exchange, limit order, open position, per diem, margin rate, irrevocable trust, deferred tax, wholly-owned subsidiary


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use