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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1182 |
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(Martocchio, 2003)
401(k) Plans
Section 401(k) plans are retirement plans named after the section of the Internal Revenue Code that created them. These plans, also known as cash or deferred arrangements (CODAs). This plan permits employees to defer part of their compensation to the trust of a qualified defined contribution plan...
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Only private sector or tax-exempt employers are eligible to sponsor 401(k) plans. (Martocchio, 2003)
Section 401(k) plans offer three noteworthy tax benefits. First, employees do not pay income taxes on their contributions to the plan. Second, employers deduct their contributions to the plan from taxable income...
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