401(k) plan

Product

by U.S. Internal Revenue Service (legal framework); offered and administered by employers and financial-services providers

A 401(k) plan is a U.S. employer-sponsored defined-contribution retirement savings plan established under section 401(k) of the Internal Revenue Code. Employees typically contribute through payroll deductions, with traditional contributions generally made pre-tax; employers may also provide matching contributions, and some plans offer Roth contributions.