1. A retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments yourself
   "Many employees choose to maximize their contributions to their 401-k plans to take advantage of employer matching";
   - 401-k

Derived forms: 401-k plans

Type of: pension account, pension plan, retirement account, retirement plan, retirement program, retirement savings account, retirement savings plan