What is a 401(k) Plan and How Does it Work?
HR Digest
MARCH 28, 2023
Here’s how it works: When an employee enrolls in a 401(k) plan, they choose a percentage of their salary to contribute to the plan, up to a certain limit set by the Internal Revenue Service (IRS). The advantage of a Roth 401(k) is that withdrawals in retirement are tax-free, as long as certain conditions are met.
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