HR Glossary

What is 401(k)?

A US employer-sponsored retirement savings plan allowing employees to contribute pre-tax or Roth after-tax dollars from their paycheck, often with an employer matching contribution, governed by Section 401(k) of the Internal Revenue Code.

Why it matters in hiring

401(k) comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with #

• 30-60-90 Day Plan
• 360-Degree Feedback
• 360 Feedback
• 4-Day Work Week
• 401(k) Compliance
• 403(b)
• 70-20-10 Learning Model
• 90-Day Plan

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.