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 The contributions on all earnings in the 408(k) plan are tax-deferred until withdrawn.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: 401a, real GDP, inflation, command economy, in escrow, cancelled check, ex-dividend, 1035 exchange, required rate of return, Key Rate Duration, stock market close, margin rate, average price per share, current ratio, deferred tax, Zero Cost Collar, stock split, EBITDA, implied volatility, LIBOR, balance sheet, risk management, FTSE, deferred revenue, per diem, labor relations, retained earnings, debt service coverage, phantom income, ex-dividend date, liquidity ratio, FICO score, 1031 exchange, annual return, option premium, covered put, 144a, wholly-owned subsidiary, irrevocable trust, APR, reverse mortgage, minority interest, open position, VIX, quality assurance, class C shares, dividends payable, limit order, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | 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