Select your state

Investments

Employer 401(k) plan

An employer 401(k) plan is an employer-sponsored retirement savings plan that gives employees a choice of investment options—typically mutual funds. Employees who participate in a traditional 401(k) plan have a portion of their pre-tax salary invested directly in the option or options they choose. These contributions and any earnings from the 401(k) investments are not taxed until they are withdrawn.

In Colorado, as in other states, an employer 401(k) plan is a retirement savings vehicle that allows employees to contribute a portion of their pre-tax earnings to a selection of investment options, often including mutual funds. Contributions to a traditional 401(k) plan reduce an employee's taxable income in the year they are made, and the funds grow tax-deferred. This means that employees do not pay taxes on the contributions or the investment gains until they withdraw the money, typically after reaching retirement age. The specific rules and regulations governing 401(k) plans are established by federal law, particularly under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. Employers in Colorado who offer 401(k) plans must comply with these federal regulations, including nondiscrimination testing to ensure plans do not favor highly compensated employees, providing plan information to participants, and adhering to contribution limits set by the IRS.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Investments

Employer 401(k) plan

Individual & Family Legal Plan

Articles

Colorado State Code

Colorado State Code

Investments

Employer 401(k) plan

Articles