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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).

Money Purchase Plans: Contributions, Benefits, and Real-World Triumphs Thumbnail

Money Purchase Plans: Contributions, Benefits, and Real-World Triumphs

Silas Bamigbola

401(k) Direct Rollover: Streamlining Your Retirement Strategy Thumbnail

401(k) Direct Rollover: Streamlining Your Retirement Strategy

Silas Bamigbola

Nonelective Contributions: How It Works, Pros and Cons, and Examples Thumbnail

Nonelective Contributions: How It Works, Pros and Cons, and Examples

SuperMoney Team

Collective Investment Funds (CIFs): Evolution, and Noteworthy Examples Thumbnail

Collective Investment Funds (CIFs): Evolution, and Noteworthy Examples

SuperMoney Team

401k Plans: Complete Guide on 401(k) Retirement Plans Thumbnail

401k Plans: Complete Guide on 401(k) Retirement Plans

Andrew Latham

401(k) vs. 408(k) Plans: Understanding Differences, Eligibility, and Considerations Thumbnail

401(k) vs. 408(k) Plans: Understanding Differences, Eligibility, and Considerations

Alessandra Nicole

Matching Contributions: How It Works and Strategic Insights Thumbnail

Matching Contributions: How It Works and Strategic Insights

Silas Bamigbola

Salary Reduction Contributions: Definition, Benefits, and FAQs Thumbnail

Salary Reduction Contributions: Definition, Benefits, and FAQs

SuperMoney Team

Transferring Wealth: Direct Transfers in Personal Finance Thumbnail

Transferring Wealth: Direct Transfers in Personal Finance

Abi Bus

Rollover IRAs: Definition, Mechanics, and Strategic Planning Thumbnail

Rollover IRAs: Definition, Mechanics, and Strategic Planning

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

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.