Is A 401k An Employer Sponsored Retirement Plan?
- 61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaA 401(k) is an qualified employer sponsored, defined contribution plan under ERISA, the Employee Retirement Income Security Act of 1974. The contributions are tax deductible. (Some employers match some portion of the employee's contribution.) The account accumulates tax deferred. And distributions are taxed as ordinary income at the effective tax bracket rate of the plan participant.Answered on July 26, 2013flag this answer
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