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401k

401k

A 401K plan enables employees to save money for retirement in a tax free fashion until the money is withdrawn from the account upon the acceptable retirement age. The funds in the account can be invested in different stocks, bonds, mutual funds or other assets. This was created by Congress in 1981 and is named 401k due to the section of the Internal Revenue Code that describes it.

Top Questions Asked on ChaCha.com for 401k

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  1. What is the current average return on a 401 (k) retirement plan?

    The annual rate of return is set at about 9% right now, on th...

  2. Are 401 (k) contributions subject to medicare and social security taxes?

    401k contributions are included as wages subject to social se...

  3. What is the difference between 401k and a 403b?

    Both are retirement plans, but 403(b) is only available for t...

  4. What is the difference between a 401(k) and an IRA?

    An IRA is a private investment funded solely by your own mone...

  5. What are the differences and similarities between a 401k and ROTH IRA?

    Differences between 401K and Roth IRA are: 401K: Growth accum...

  1. How does 401k work?

    A 401K is investing in your company and It's money that is gi...

  2. What is a 401k plan?

    A 401K plan allows a worker to save for retirement while defe...

  3. What is the most you can put in your 401k in 2011?

    The IRS 2011 maximum 401K contribution limit will stay the sa...

  4. What is the average yearly rate of return on a 401K?

    The actual rate of return is largely dependent on the type of...

  5. What is the definition of 401k?

    401(k) plan definition: A defined contribution plan offered b...

Top Questions Asked on ChaCha Mobile for 401k

In the Last:
Week | Month

  1. What is the difference between a 401(k) and an IRA?

    An IRA is a private investment funded solely by your own mone...

  2. What is a 401k plan?

    A 401K plan allows a worker to save for retirement while defe...

  3. What is a 401k account?

    A 401k is a company/employer sponsored retirement plan that a...

  4. If you take money out of a 401k account do you have to pay it back?

    No, your 401k is yours to do with what you choose. Some emplo...

  5. What does 401k mean?

    401k - Employer sponsored retirement plan. These plans have a...

  1. What is a 401k plan?

    A 401K plan allows a worker to save for retirement while defe...

  2. What does 401k mean?

    401k - Employer sponsored retirement plan. These plans have a...

  3. What is a 401 k plan?

    In the United States, a 401(k) retirement savings plan allows...

  4. What are the contribution limits for a individual 401k?

    The contribution limits vary from plan to plan for a individu...

  5. How does 401k work?

    A 401K is investing in your company and It's money that is gi...

About 401k

A 401k plan follows an employee throughout his or her career, even when changing employers. There are many benefits to starting a 401k plan. Most employers will match up to a percentage of what you contribute to your plan. That's like being given free money! Dividend, interest and capital gains are not taxed until the money is withdrawn from the account. Also, there are a range of choices as to how you can invest in your 401k plan, giving you customization and flexibility. Whether you prefer short-term or long-term bonds or a heavy emphasis on equities, it's up to you how you invest.

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401k