401(k)

English

Etymology

From section 401(k) of the US Internal Revenue Code, which provides for such accounts.

Pronunciation

• IPA^(key): /fɔɹ.oʊ.wʌn.keɪ/

Noun

401(k) (plural 401(k)s)

1. (US) A tax-qualified, defined-contribution pension account.
   • 2008 January–February, Steve Calechman, “5 Things You Can Stop Worrying about (And 5 Others that Should Trouble You Deeply)”, in Men's Health, volume 23, number 1, →ISSN, page 148:

     Contribute 10 percent of your salary each month to your 401(k), and you're good. Start at age 25 making $50,000 a year, and earn a 3 percent annual raise until retirement.