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 under 50 can make in 2018 is $18,500. If the employee is over 50, they may make an additional catch up contribution of $6,000.

This article provides general information and shouldn’t be construed as legal, benefits, or HR advice. Benefits and insurance regulations may change over time and may vary by location and employer size. So, please consult a licensed broker or appropriately certified expert for advice specific to your business’s benefits options.