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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 These contributions and any earnings from the 401(k) investments are not taxed until they are withdrawn.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 Missouri, as in other states, an employer 401(k) plan is a retirement savings program that is sponsored by an employer and allows employees to save and invest for their retirement on a tax-deferred basis. Employees can choose to have a portion of their pre-tax salary invested in various investment options, which often include a selection of mutual funds. The contributions made to the 401(k) plan, as well as any earnings on the investments, are not subject to federal or state income tax until the employee withdraws the money, typically after reaching retirement age. The specific regulations governing 401(k) plans are established at the federal level, primarily under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. Missouri state law does not specifically regulate the details of 401(k) plans but does require employers to follow the federal guidelines. Employers offering 401(k) plans must comply with non-discrimination testing to ensure that the benefits of the plan do not favor highly compensated employees over others.

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Employer 401(k) plan

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Missouri State Code

Missouri State Code

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Employer 401(k) plan

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