In general, most plans are set-up to receive contributions made by the employer. If your employees also wish to contribute to the plan, a 401(k) or 403(b) plan allows employee contributions from their pay on a pre-tax basis or after-tax basis. The following are simplified descriptions of the most popular types of plans.
See our "Cost of Living Adjustments" section for the maximum contribution amounts that may be contributed to participant accounts each year and the maximum pay that may be considered for plan purposes in addition to other plan-related limits set by the Internal Revenue Service and statute.
Defined Contribution Plans (DC Plans)