One of the most popular types of pension plans today is the 401(k) Plan. More and more plan sponsors are recognizing the role 401(k) plans can play in meeting employees retirement needs. A 401(k) plan is a type of Defined Contribution Pension Plan that enables employees to make contributions to the plan before taxes. Contributions made to the plan reduce the employees taxable income while saving for retirement. Contributions and earnings thereon are not taxed until they are withdrawn from the plan.
Types of Pension Plans: 401(k) |