401(k) =??

[bieasy]

Hi,

What does 401(k) mean in the following passage?

".... I put a decent slug of my salary into my 401(k), and even though I spend a ridiculous percentage of my paycheck on housing ..."

My Recession Budget: How Much Less Can You Spend? - TIME

[David L.]

In the United States of America, a 401(k) plan allows a worker to save for retirement and have the savings invested while deferring current income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wages paid directly, or "deferred," into his or her 401(k) account.

[bieasy]

In the United States of America, a 401(k) plan allows a worker to save for retirement and have the savings invested while deferring current income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wages paid directly, or "deferred," into his or her 401(k) account.

by "deferring" you mean delaying?

[David L.]

'defer' means to purposefully put off to a later time, to postpone.

'delay' certainly means 'to put off to a later date' but it is because of obstacles (e.g. a plane delayed by severe thunderstorms); or because you are reluctant to do it. ( e.g. delay going to see the doctor about something because you're frightened he'll tell you its cancer).