401(k)

[krone]

schweser mock 2 book exam 3 Q3c

what is a 401(k) plan? is it a DC Plan and is it tax deferred account?

many thanks!

[S2000magician]

It is a tax-deferred DC plan.

The name refers to section 401(k) in the US Internal Revenue Code (IRC) in which the tax treatment of such accounts is described.

[krone]

@S2000magician

It is a tax-deferred DC plan.

The name refers to section 401(k) in the US Internal Revenue Code (IRC) in which the tax treatment of such accounts is described.

many thanks!!!

ps:i am not living in the U.S, not familiar with these…

[S2000magician]

@krone

@S2000magician

It is a tax-deferred DC plan.

The name refers to section 401(k) in the US Internal Revenue Code (IRC) in which the tax treatment of such accounts is described.

many thanks!!!

You’re welcome.

@krone

ps:i am not living in the U.S, not familiar with these…

I figured as much; that’s the reason I mentioned the origin of the name and provided a link.