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401 (k)

A 401(k) plan is a retirement savings plan offered by many American employers that has tax advantages to the saver. It's named after section of U. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to 401 (k).

Plan Sponsorship: What It Is, How It Works, and Key Benefits Thumbnail

Plan Sponsorship: What It Is, How It Works, and Key Benefits

Abi Bus

What is Vesting Schedule? How Cliff and Graded Vesting Work Thumbnail

What is Vesting Schedule? How Cliff and Graded Vesting Work

Andrew Latham

Cash Balance Pension Plans Explained: How They Work and Who Benefits Thumbnail

Cash Balance Pension Plans Explained: How They Work and Who Benefits

Andrew Latham

Roth Conversion Ladder: How It Works for Early Retirement Thumbnail

Roth Conversion Ladder: How It Works for Early Retirement

Andrew Latham

Rule of 55: Penalty-Free 401(k) Withdrawals Explained Thumbnail

Rule of 55: Penalty-Free 401(k) Withdrawals Explained

Andrew Latham

What Is a Mutual Fund? Definition, Types, Fees, and How It Works Thumbnail

What Is a Mutual Fund? Definition, Types, Fees, and How It Works

Andrew Latham

What Is Compound Interest? Definition, Formula,and How It Builds Wealth Over Time Thumbnail

What Is Compound Interest? Definition, Formula,and How It Builds Wealth Over Time

Andrew Latham

Fixed Index Annuity: How FIAs Work, Caps, Income Riders, and Who They Suit Thumbnail

Fixed Index Annuity: How FIAs Work, Caps, Income Riders, and Who They Suit

Andrew Latham

What Is an Unrealized Gain? Definition, Tax Rules, and Examples Thumbnail

What Is an Unrealized Gain? Definition, Tax Rules, and Examples

Andrew Latham

What Is an Investment Portfolio? Thumbnail

What Is an Investment Portfolio?

Andrew Latham

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Learn About 401 (k)

Thumbnail for Blog Article: Gen X's $1.24 Million Retirement Gap: The Numbers, and How to Close It

Gen X's $1.24 Million Retirement Gap: The Numbers, and How to Close It

SuperMoney Team

Thumbnail for Blog Article: Trump’s New 401(k) Order: Will Crypto and Private Equity Change Retirement Forever?

Trump’s New 401(k) Order: Will Crypto and Private Equity Change Retirement Forever?

SuperMoney Team

Thumbnail for Blog Article: Behind on Retirement Savings? How to Reboot Your Retirement Plan

Behind on Retirement Savings? How to Reboot Your Retirement Plan

Jessica Walrack

Thumbnail for Blog Article: Defined Benefit Vs Defined Contribution Plans

Defined Benefit Vs Defined Contribution Plans

Camilla Smoot

Thumbnail for Blog Article: Secret of Retirement Savings: Making Up For Lost Time?

Secret of Retirement Savings: Making Up For Lost Time?

Jessica Walrack

Thumbnail for Blog Article: Walmart 401(k) Plan: 6% Match & Rules Guide (2026)

Walmart 401(k) Plan: 6% Match & Rules Guide (2026)

Emma Dillon

Page 1 of 5

About 401 (k)

A 401(k) plan is a retirement savings plan offered by many American employers that has tax advantages to the saver. It's named after section of U.S Internal Revenue Code, and it works like this; when an employee signs up for one they agree with their company on how much money from each paycheck should go into an investment account each month. The employer may match part or all of that contribution. This money is invested into among a number of investment options, usually mutual funds.