I know it is an investment program with companies, but I'm wondering where the number 401 and the letter k come from. Does the k stand for something?
2006-10-12 02:45:56 · 3 answers · asked by p4kphil 2 in Business & Finance ➔ Investing
It is named after the section of the IRS code where it appears. They were started in 1978.
2006-10-12 02:52:38 · answer #1 · answered by VATreasures 6 · 2⤊ 0⤋
1
2016-12-25 01:32:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A Defined contribution plan offered by a corporation to ITS employees, which allows employees to set aside Tax-deferred income for retirement purposes, and in some cases employers will match their Contribution dollar-for-dollar. Taking a distribution of the funds before a certain specified age will Trigger a Penalty tax. The name 401(k) comes from the IRS section describing the Program.
2006-10-12 02:50:13 · answer #3 · answered by polecat 2 · 1⤊ 0⤋