9.6 Employer-Employee Plans
Now let's take a look at a few of the most common plans offered by employers to their employees.
- The 401(k) plan - One of the most popular funding vehicles for retirement in existence today. The plan got its name from its section number and paragraph in the Internal Revenue Code - Section 401, paragraph (k). The 401(k) is a defined contribution plan.
- The 403(b) plan - For nonprofit organizations.
- The IRC Section 457 plan - Employee compensation is deferred to some future age or date.
