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GLOSSARY
401k plans definition
Published by a LexisNexis Pensions expert
What does 401k plans mean?
A US defined contribution scheme where the employer sponsors a tax registered (‘qualified’) plan in which employees allow the employer to deduct money from their salaries, tax free and on a regular basis, to invest in stocks, bonds or real estate,
The scheme is mostly for pension purposes, but the funds can also be used for education or medical emergencies.
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