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LeoGlossary: 401K

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How to get a Hive Account


This refers to a section 401(K) of the Internal Revenue Service code.

A 401K plan is a defined benefit plan where employees contribute a certain amount of their paycheck. This contribution may or may not be matched by the employer. All contributions are tax-deferred, meaning it is all pre-tax income. Taxes on both the contributions are collected upon withdrawal.