Could you please elaborate on what a K plan is? I'm not familiar with the term in the context of cryptocurrency or finance. Is it a specific type of investment plan, a retirement savings vehicle, or something else entirely? I'd appreciate it if you could provide a concise yet comprehensive explanation of what a K plan entails, including its purpose, benefits, and any potential risks or limitations associated with it.
7 answers
Bianca
Sun Sep 22 2024
A 401(k) plan is a retirement savings vehicle offered by employers to their employees. It allows individuals to save and invest a portion of their pre-tax income for their future retirement.
MountFujiMystic
Sun Sep 22 2024
The plan is considered a qualified plan, meaning it meets certain requirements set by the Internal Revenue Service (IRS) and the Employee Retirement Income Security Act (ERISA).
KimonoElegantGlitter
Sun Sep 22 2024
One of the key features of a 401(k) plan is the ability for employees to elect to have their employer contribute a portion of their wages directly into their individual account under the plan.
CherryBlossom
Sun Sep 22 2024
The employer's contributions can be made in the form of a matching contribution, where the employer matches a certain percentage of the employee's contributions, or a non-elective contribution, where the employer contributes a fixed amount regardless of the employee's contributions.
EnchantedPulse
Sat Sep 21 2024
The underlying plan can take various forms, including a profit-sharing plan, where the employer contributes a portion of its profits to the plan, a stock bonus plan, where the employer contributes company stock to the plan, or a pre-ERISA money purchase pension plan, which is a type of defined contribution plan.