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[F000]

401(k) Plan

Retirement plan in which employees can make contributions (or elective deferrals) to the plan on a pre-tax basis. Employers can also make contributions to the plan on behalf of the employee. The maximum combined amount that can be contributed by the employee and employer is 25% which is also subject to a dollar amount cap. A 401(k) Plan is also known as a qualified savings plan.

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