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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
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Encyclopedia Articles

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

What Is a Required Minimum Distribution (RMD)? Thumbnail

What Is a Required Minimum Distribution (RMD)?

Andrew Latham

What Is a SIMPLE IRA? How It Works, Limits, and Who It's For Thumbnail

What Is a SIMPLE IRA? How It Works, Limits, and Who It's For

Andrew Latham

Designated Roth Accounts: Definition, Mechanics, and Tax Benefits Thumbnail

Designated Roth Accounts: Definition, Mechanics, and Tax Benefits

Alessandra Nicole

Active Participant Status: Definition, Implications, and FAQs Thumbnail

Active Participant Status: Definition, Implications, and FAQs

Alessandra Nicole

What is a Pension and How Does it Work? Thumbnail

What is a Pension and How Does it Work?

Sarah Loughry

Pretax Contributions: A Comprehensive Guide How To Maximize Tax Savings Thumbnail

Pretax Contributions: A Comprehensive Guide How To Maximize Tax Savings

Silas Bamigbola

Qualified Retirement Plans: Meaning and Types Thumbnail

Qualified Retirement Plans: Meaning and Types

SuperMoney Team

What is a cashless exercise? Example & how it works Thumbnail

What is a cashless exercise? Example & how it works

Abi Bus

Defined Contribution Plan: How it Works, Types, and Examples Thumbnail

Defined Contribution Plan: How it Works, Types, and Examples

Silas Bamigbola

Highly Compensated Employee (HCE): Definition, How It Works, and Examples Thumbnail

Highly Compensated Employee (HCE): Definition, How It Works, and Examples

SuperMoney Team

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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

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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.