401(K) Accounts
- Entry
- Reader's Guide
- Entries A-Z
- Subject Index
-
401(k) accounts were established by the Revenue Act of 1978. The purpose of 401(k) accounts was to help eligible employees prepare for retirement through tax-deferred employer contributions. 401(k) accounts are also known as cash or deferred arrangements, which means that employees have the option to (a) receive a designated portion of their current salary in cash (in their payroll) or (b) make an elective deferral contribution to the 401(k) plan. The elective deferral contribution is tax deferred, meaning that the earnings are not subject to income taxation until the employee takes a distribution from the plan, which will typically take place at retirement.
Establishment of the Plans and Eligibility401(k) plans can only be established by certain types of entities. Corporations, partnerships, LLCs (limited liability companies), ...
-
-
- [0-9]
- 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
-
167456- Loading...
Similar content on SAGE Knowledge
Loading content...Also from SAGE Publishing
- CQ Library American political resources opens in new tab
- Data Planet A universe of data opens in new tab
- Lean Library Increase the visibility of your library opens in new tab
- SAGE Journals World-class research journals opens in new tab
- SAGE Research Methods The ultimate methods library opens in new tab
- SAGE Stats Data on demand opens in new tab