What is a 401(k)?

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:

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