Even though the term "401(k)" is a reference to a specific provision of the U.S. Internal Revenue Code section 401, it has become so well known that it has been used elsewhere as a generic term to describe analogous legislation. For example, in October 2001, Japan adopted legislation allowing the creation of "Japan-version 401(k)" accounts even though no provision of the relevant Japanese codes is in fact called "section 401(k)".
In the United States, a 401(k) plan is the tax-qualified, defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code. Under the plan, retirement savings contributions are provided (and sometimes proportionately matched) by an employer, deducted from the employee's paycheck before taxation (therefore tax-deferred until withdrawn after retirement or as otherwise permitted by applicable law), and limited to a maximum pre-tax annual contribution of $19,500 (as of 2020).
“A direct transfer going from your 401(k) to your IRA is the best and easiest option. You can get a check and then use the 60-day period to put the money into a qualified account but use caution. Some states require a tax to be withheld. You can only do one rollover per year when doing it this way. Most plans allow a direct transfer at age 59 1/2 even if you are still working, which can allow you to move the bulk of your retirement dollars to an IRA and still contribute to a 401(k).” — Mark Henry, CEO, Alloy Wealth Management
If, for example, you do a 401(k) rollover to IRA and later contribute to your rollover IRA (as you would to a traditional IRA) or if you combine that rollover IRA with assets from another IRA, you may be limited in what you can do with your rollover IRA in the future. If you joined a new company, you would not be able to roll that account into your new 401(k).
Employees who are eligible for a rollover IRA can do one rollover in a 12-month period — no matter how many IRAs or 401(k) accounts they have. According to IRA rollover rules, completing a rollover is a simple process. There are two ways to do a rollover — a direct transfer between custodians or by having your current custodian send you a check and completing the rollover yourself within 60 days.
Nepal and Sri Lanka have similar employees provident fund schemes. In Malaysia, The Employees Provident Fund (EPF) was established in 1951 upon the Employees Provident Fund Ordinance 1951. The EPF is intended to help employees from the private sector save a fraction of their salary in a lifetime banking scheme, to be used primarily as a retirement fund but also in the event that the employee is temporarily or no longer fit to work. As of March 31, 2014, the size of the EPF asset size stood at RM597 billion (US$184 billion), making it the fourth largest pension fund in Asia and seventh largest in the world.