401(a)
Business & Finance abbreviation · Personal Finance
| Stands for | Qualified retirement plan (Internal Revenue Code section 401(a)) |
|---|---|
| Categories | Business & Finance |
401(a) stands for Qualified retirement plan (Internal Revenue Code section 401(a)), a personal finance abbreviation.
Employer-funded retirement plan common at government agencies, universities and nonprofits, where the employer sets the contribution formula and participation is often mandatory. Many public employers pair a 401(a) with a voluntary 457(b) or 403(b) for extra savings.
Example: New faculty hires are enrolled automatically in the university's 401(a), with 5% of salary from the employee and 8% from the school.
Usage notes
Section 401(a) technically defines every qualified plan, including the 401(k), but "401(a) plan" in everyday use means a money purchase or similar plan with employer-set contributions. Employees usually cannot change the contribution rate once enrolled.
Related abbreviations
More personal finance abbreviations
- 401(k) – Employer-sponsored retirement savings plan (Internal Revenue Code…
- 403(b) – Tax-sheltered annuity plan (Internal Revenue Code section 403(b))
- 457(b) – Deferred compensation plan (Internal Revenue Code section 457(b))
- 529 – Qualified tuition program (Internal Revenue Code section 529)
- ABLE – Achieving a Better Life Experience account
- AER – Annual equivalent rate
- APR – Annual percentage rate
- APRC – Annual percentage rate of charge
- APY – Annual percentage yield
- AU – Authorized user
- BT – Balance transfer
- CIBIL – Credit Information Bureau (India) Limited