The Weiss Group
IRC §401(k)-Cash or Deferred Arrangement (CODA)
A 401(k) plan is one that allows employees to contribute a portion of their salary on a pre-tax basis. The employer may make additional contributions to the plan in the form of a matching contribution or non-elective contribution.
401(k) plans are subject to special non-discrimination testing that may limit the amount that highly compensated employees may contribute to a multiple of the average contributed by non-highly compensated employees.
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