Salary Reduction Plan

Salary Reduction Plan
A salary reduction plan allows employees to have a certain percentage of their gross salary withheld and invested in options such as stocks, bonds, or money market funds.
Section 401(k) Plan
A Section 401(k) Plan allows an employee to contribute pretax earnings to an individual account, invested in various financial instruments, accumulating tax-deferred until withdrawal.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.