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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

408(k) plan  

Definition 1.

A simpler alternative to a 401(k) plan available only to companies with 25 or fewer employees, which gives employees the opportunity to make contributions to their SEP accounts with pre-tax dollars and reduce their current year's net income. also called Salary Reduction Simplified Employee Pension (SARSEP) Plan.
 
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