Glossary
401a
Apr 4, 2024

What is a 401a?

A 401 a plan is a qualified retirement plan offered by employers to their employees. The plan allows the employee to contribute pre-tax earnings, which are then invested in the employee’s account. Employees may be allowed to make additional contributions through payroll deductions or other forms of payment, such as lump sum payments on a pre-tax basis or after-tax basis.

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