What is a 401(k)?

A 401(k) plan is a tax-deferred savings plan for retirement. Contributions are deducted from an employee’s gross pay and put into a 401(k) account. The maximum contribution an employee who is under 50 can make in 2017 is $18,000. If the employee is over 50 they may make an additional catch up contribution of $6,000.

Was this post helpful?