ADVERTISEMENT

What is a 401(k)? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

A 401(k) is a employer-sponsored, tax-advantaged retirement plan funded with payroll deductions and in some cases contributions by the employer. The employee is responsible for choosing how to invest money in the plan and therefore assume most of the risk involved. Investment options are limited and, depending on the company and plan administrator, may include company stock, mutual funds, exchange-traded funds and cash alternatives.

 

 

See Also:

IRA vs. 401(k) -- What's the Difference?

Ask an Advisor: Can I Lose My 401(k)?

How to Roll Over Your 401(k) to an IRA

Ask an Advisor: Help! I'm Running Out of Money

How Much Do I Need to Retire?

Plan to Retire Someday? You'll Want One of These

4 Questions for Your 401(k)

Secure Your 401(k), by the Pool

Ask An Advisor: When Should I Collect Social Security? 

Tagged in: Sponsored, 401(k), Glossary
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

© Copyright DailyWorth 2014