401(k)
noun ·Rare ·Advanced level
Definitions
- 1 A tax-qualified, defined-contribution pension account. US
"Entrepreneurs have responded enthusiastically: Solo 401(k) assets now stand at $2.5 billion, and could hit $90 billion by 2012. It's easy to see why the plans are becoming so popular. As with ordinary 401(k)s, as well as SEP-IRAs designed for the self-employed, individual 401(k)s allow you to invest a portion of your income on a pretax basis—and your contributions grow tax-deferred."
Example
More examples"Entrepreneurs have responded enthusiastically: Solo 401(k) assets now stand at $2.5 billion, and could hit $90 billion by 2012. It's easy to see why the plans are becoming so popular. As with ordinary 401(k)s, as well as SEP-IRAs designed for the self-employed, individual 401(k)s allow you to invest a portion of your income on a pretax basis—and your contributions grow tax-deferred."
Etymology
From section 401(k) of the US Internal Revenue Code, which provides for such accounts.
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Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.