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 These contributions and any earnings from the 401(k) investments are not taxed until they are withdrawn.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 Iowa, as in other states, an employer 401(k) plan is a common retirement savings vehicle that allows employees to contribute a portion of their pre-tax salary to selected investment options, often including a variety of mutual funds. The contributions made to a traditional 401(k) plan, along with any earnings from the investments, are tax-deferred, meaning they are not subject to federal or state income tax until the employee withdraws the funds, typically upon retirement. The plan is regulated by federal law under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code, which set forth the guidelines for plan contributions, distributions, and fiduciary responsibilities. Employers in Iowa may offer 401(k) plans as a benefit to attract and retain employees, and they may also choose to match a portion of the employees' contributions, further enhancing the value of the plan for participants.

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

Iowa State Code

Iowa State Code

Investments

Employer 401(k) plan

Articles