3622 Veterans Drive, Suite 3
Traverse City, MI 49684
Phone: 231-922-1615
Email: obaoffice@oldbarnacct.com

Glossary / 401(k)

401(k)

A retirement account to which an eligible employee can contribute a certain amount of his or her pretax salary; earnings are tax-deferred. Some employers may match a stated percentage of employee 401(k) contributions. The reduced cost and liability of 401(k) plans appeal to employers.