What is 401(k) Contribution ?
According to the U.S. Internal Revenue Code section 401(k), a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account in the country. Regular employee contributions are automatically withheld from their paychecks, and the employer may match them. Because of this legal option, which many businesses offer to their (full-time) employees, employees find 401(k) plans enticing.