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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 These contributions and any earnings from the 401(k) investments are not taxed until they are withdrawn.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 Ohio, 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 a traditional 401(k) plan, along with any investment earnings, are not subject to federal or state income tax until the employee withdraws 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. Ohio does not have specific state statutes that alter the federal framework for 401(k) plans, but state tax laws generally conform to federal tax treatment regarding these retirement plans.

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Investments

Employer 401(k) plan

Individual & Family Legal Plan

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Ohio State Code

Ohio State Code

Investments

Employer 401(k) plan

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