401(k) retirement account

[Vanda]

Hello all!

What is the meaning of this k in this sentence:
The husband has a 401(k) retirement account amounting to $610,000 and the wife has two small pension funds amounting to $72,000.

 

[Diddy]

The 401(k) plan is a type of employer-sponsored retirement plan in the United States and some other countries, named after a section of the U.S. Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal.

For more information about this topic, click here: http://en.wikipedia.org/wiki/401(k)

Have a nice day!!!

 

[panjandrum]

The 401(k) plan is a type of employer-sponsored defined contributionretirement plan under section 401(k) of the Internal Revenue Code (26 U.S.C.§ 401(k)) in the United States, and some other countries.

SShhh whisper - it's all in wiki HERE.

 

[Vanda]

Thank you very much, good people! I had searched for it but all I got was this page. So I gave up.

 

[GreenWhiteBlue]

Look here:
http://en.wikipedia.org/wiki/401(k)

EDIT: How odd. Well, when you get that page again, add the final parenthesis to the (k) yourself.

The (k) refers to the applicable section of the Tax Code. There is a section 401 (a), and 401 (b), and 401 (c), and so on. This type of plan is described in section 401 (k).