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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).

Annual Addition: What It Is, How It Works, and Contribution Limits Thumbnail

Annual Addition: What It Is, How It Works, and Contribution Limits

Abi Bus

Understanding the Accumulation Phase: Definition, Significance, and Strategies for Retirement Planning Thumbnail

Understanding the Accumulation Phase: Definition, Significance, and Strategies for Retirement Planning

Alessandra Nicole

Eligible Rollover Distributions: Strategies, Examples and Navigating Challenges Thumbnail

Eligible Rollover Distributions: Strategies, Examples and Navigating Challenges

Silas Bamigbola

Brokerage Windows: Definition, Functionality, and Considerations Thumbnail

Brokerage Windows: Definition, Functionality, and Considerations

Alessandra Nicole

Qualifying Investment: Definition, How It Works, and Example Thumbnail

Qualifying Investment: Definition, How It Works, and Example

Dan Agbo

KSOPs in Finance: Definition, Mechanics, and Considerations for Employers and Employees Thumbnail

KSOPs in Finance: Definition, Mechanics, and Considerations for Employers and Employees

Alessandra Nicole

What Are Additional Voluntary Contributions (AVCs)? Explained: How They Impact Retirement Savings, Contribution Limits, and Tax Implications Thumbnail

What Are Additional Voluntary Contributions (AVCs)? Explained: How They Impact Retirement Savings, Contribution Limits, and Tax Implications

Alessandra Nicole

Plan Participants: Roles, Rights, and Real-World Examples Thumbnail

Plan Participants: Roles, Rights, and Real-World Examples

Silas Bamigbola

Conduit IRA: Understanding, Strategies, and Real-Life Success Stories Thumbnail

Conduit IRA: Understanding, Strategies, and Real-Life Success Stories

Silas Bamigbola

Pension Plan Withdrawals: Navigating Credits and Strategies Thumbnail

Pension Plan Withdrawals: Navigating Credits and Strategies

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.