Skip to main content
Category

401(k)s

401(k)s are a type of retirement savings account that an employer sponsors. They are named after the US Internal Revenue Code section that governs them. Employees contribute a portion of their pre- or post-tax income to the plan; in some cases, employers may also contribute to the plan on behalf of their employees. The money contributed to the plan is invested in various assets such as stocks, bonds, mutual funds, and other investments.