Retirement Savings Plan - 401(k)

A 401(k) is a retirement savings plan in the United States, allowing employees to contribute a portion of their salary to a tax-advantaged investment account. Employers may also match a percentage of these contributions. The funds grow tax-deferred until withdrawal during retirement. Many 401(k) plans are offered through employers. Employees can inquire with their HR department about the plan, eligibility criteria, and enrollment process. There are annual contribution limits set by the IRS. Select investments for your contributions. Most 401(k) plans offer a range of investment options like mutual funds or target-date funds.