2007-01-05 11:39:40 · 12 answers · asked by Anonymous in Business & Finance ➔ Investing
The 401(k) plan is a type of employer-sponsored retirement plan in the United States and some other countries, named after a section of the U.S. Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until withdrawal.
The employee elects to have a portion of his or her wage paid directly, or "deferred", into his or her 401(k) account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. Many companies' 401(k) plans also offer the option to purchase the company's stock. The employee can generally re-allocate money among these investment choices at any time. In the less common trustee-directed 401(k) plans, the employer appoints trustees who decide how the plan's assets will be invested.
2007-01-05 11:41:31 · answer #1 · answered by iroc 7 · 0⤊ 1⤋
A 401k is a type of retirement savings account that you get through your employer.
2007-01-05 11:41:49 · answer #2 · answered by ♪ ♥ ♪ ♥ 5 · 0⤊ 0⤋
This is a retirement savings account that you can invest in mutual funds and your employer will take the money out of your paycheck before you pay taxes on it.
2007-01-05 11:41:34 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you positioned aside pre-tax money on your retirement. They pass right into a 401k account and generally your organization contributes besides. Your money supervisor (constancy Investments working example) invests you money in shares and bonds and you will theoretically have lots of money by the time you retire. objective to speculate 8% of your revenue into your 401k, extra in case you have the money for it and you will possibly desire to have a intense high quality cushion for retirement. -HR woman
2016-12-16 03:12:29 · answer #4 · answered by boulger 4 · 0⤊ 0⤋
A savings account used for retirement where many employers will match what you put in up to a certain amount.
2007-01-05 11:41:30 · answer #5 · answered by Wendy H 2 · 0⤊ 0⤋
Okay..."short words":
You work, put some of money away ( in 401k)
boss may put some money in, too ( maybe not)
money makes more money
you can have it when you are 60
may be MUCHO!......... hope so!
2007-01-05 16:09:48 · answer #6 · answered by jebediabartlett 6 · 0⤊ 0⤋
A tax term used to reference your retirement funds.
2007-01-05 11:41:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋
it a savings plan that you get at work. its depends on how much you ask for your employer to take out of your check and that same amount is the same amount that your employer also puts in
2007-01-05 11:43:45 · answer #8 · answered by so_wats_new_89 2 · 0⤊ 0⤋
just the name of a retirement savings plan in the US.
2007-01-05 11:41:34 · answer #9 · answered by JD 2 · 0⤊ 0⤋
a savings account, kind of.
2007-01-05 11:41:44 · answer #10 · answered by NNY 6 · 0⤊ 0⤋