PLAN PARTICIPANT Meaning and
Definition
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A plan participant is an individual who is enrolled in and actively participating in a specific financial or retirement plan. This term is commonly used in relation to employer-sponsored retirement plans such as 401(k) plans, pension plans, or employee stock ownership plans (ESOPs).
In the context of these plans, a plan participant refers to an employee or worker who is eligible to contribute a portion of their salary or wages towards the plan. These contributions are often made on a pre-tax basis, meaning they are deducted from the employee's gross income before taxes are withheld.
Plan participants have the opportunity to choose how their contributions are invested, typically through a selection of investment options offered by the plan. They may also receive matching contributions from their employer, which can enhance their retirement savings.
The term "plan participant" is also used to describe an individual who is entitled to receive benefits from the plan in the future. This can include retirement benefits, a lump-sum payment, or some other form of compensation, depending on the terms of the plan.
Overall, a plan participant is someone who actively engages with and benefits from a specific financial or retirement plan, taking advantage of its features and options to save for their future financial security.
Common Misspellings for PLAN PARTICIPANT
- olan participant
- llan participant
- 0lan participant
- pkan participant
- ppan participant
- poan participant
- plzn participant
- plsn participant
- plwn participant
- plqn participant
- plab participant
- plam participant
- plaj participant
- plah participant
- plan oarticipant
- plan larticipant
- plan 0articipant
- plan pzrticipant
- plan psrticipant
- plan pwrticipant
Etymology of PLAN PARTICIPANT
The word "plan participant" is a compound noun that combines two separate words: "plan" and "participant".
The word "plan" can be traced back to the Latin word "planus", meaning "flat" or "level". It entered the English language in the 17th century and initially referred to a drawing or diagram that was made on a flat surface. Over time, its meaning evolved to include a detailed scheme or method for achieving something.
The word "participant" comes from the Latin "participans", which is the present participle form of the verb "participare", meaning "to share" or "to take part". It entered English in the early 17th century and refers to someone who takes an active part in something or has a share in it.
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