I know it is an investment program with companies, but I'm wondering where the number 401 and the letter k come from. Does the k stand for something?
Answer:
It is named after the section of the IRS code where it appears. They were started in 1978.
A Defined contribution plan offered by a corporation to ITS employees, which allows employees to set aside Tax-deferred income for retirement purposes, and in some cases employers will match their Contribution dollar-for-dollar. Taking a distribution of the funds before a certain specified age will Trigger a Penalty tax. The name 401(k) comes from the IRS section describing the Program.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers:What are puts and calls and how are they taxed?
this is the 3 rd time that i tald my story. plese tell me somthing.i'm sad??
Roth Ira-What company is the best?
investor looking to buy notes at 12-15 % return quarterly. Is this possible or a scam?
Should i invest in this stock?
beside financing, what other necessary qualification a franchisor need?
Why should a stock have a PEG (price/earnings to growth) ratio equal to 1 in normal circumstances?
What to do with company stock? Leave alone or invest elsewhere?