Question
Why is it called 401k?
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30th Oct 2009 by Joseph Pousada
The reason it is called 401k is because these plans are allowed under the “IRS regulation section 1.401(k)” (see reference). Each subsection of the regulation goes over different aspects of the provisions and guidelines that these plans must meet. There are other regulations that pertain to deferred compensation plans, including 401k plans. It is important that your attorney who draws up the 401k plan is well versed in all the IRS regulations to ensure your plan is in compliance and does not become disqualified.
Reference:
http://www.irs.gov/pub/irs-irbs/irb05-05.pdf
The reason it is called 401k is because these plans are allowed under the “IRS regulation section 1.401(k)” (see reference). Each subsection of the regulation goes over different aspects of the provisions and guidelines that these plans must meet. There are other regulations that pertain to deferred compensation plans, including 401k plans. It is important that your attorney who draws up the 401k plan is well versed in all the IRS regulations to ensure your plan is in compliance and does not become disqualified.
Reference:
http://www.irs.gov/pub/irs-irbs/irb05-05.pdf
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20th Oct 2009 In Retirement
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Subjects: 401k,