401(k) Plan: Complete Guide

A 401(k) plan is a retirement savings plan with favorable tax features offered through a place of employment. Pre-tax employee...

A 401(k) match (or matching program) is the portion that an employer contributes to a 401(k) or similar defined contribution...

A defined contribution (DC) plan is a type of retirement savings plan employers offer to employees in a workplace setting....

The 401(k) investment menu is the list of options available to place 401(k) plan contributions. Typically consisting of pooled investment...

A 401(k) plan advisor (also called a 401(k) consultant or 401(k) specialist) is a licensed financial professional with particular expertise...

A 401(k) plan sponsor is the business, organization, or entity that establishes (or adopts), offers, and administers the retirement savings...

A 401(k) plan participant is an eligible employee enrolled in the 401(k) plan. 401(k) plan participants also include former employees...

A 401(k) plan committee is a group of company staff, often senior leaders, tasked with the plan’s oversight. Usually comprised...

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that protects employee participants in retirement savings...

A 401(k) plan contribution is a monetary amount placed in a retirement savings plan by either an employee or their...

Traditional 401(k) plans mean any contributions for retirement savings are deducted from wages and salary on a pre-tax basis, meaning...

A 401(k) plan recordkeeper does just that—keeps a record of the plan, including eligible participants, contribution amounts, frequency, withdrawals, loans,...

The Form 5500 is an important compliance, research, and disclosure document for plan participants and beneficiaries about the health and...

A solo401(k) plan (or one-participant 401k) plan is relatively new and is a traditional 401(k) plan that covers a business...

A catch-up contribution is a salary-deferred contribution made by a participant age 50 or older that exceeds the annual limit...

401(k) plan automatic enrollment (or auto-enrollment) is the process by which employees become participants in a 401(k) plan immediately upon...

401(k) plan automatic escalation (or auto-escalation) is related to 401(k) plan automatic enrollment. It automatically increases an employee’s contribution amount...

A 401(k)rollover typically occurs when a 401(k) plan participant begins a new job or is about to retire. A decision...

A 401(k) fiduciary is a person who owes a duty of care and trust to 401(k) plan participants. The fiduciary...

401(k) target-date funds (TDFs) are designed to automatically move from higher-risk, higher-return investments (stocks) to lower-risk, lower-return investments (bonds) over...