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A 401k is a type of pension plan that allows employees to save and invest for retirement on a tax-deferred basis. It is a defined contribution plan, meaning that the amount of money contributed to the plan is determined by the employee and their employer. The money is invested in a variety of assets, such as stocks, bonds, and mutual funds. The employee is responsible for managing their own investments, and the employer typically provides a matching contribution.
The 401k market has grown significantly in recent years, as more employers have adopted the plan as a way to provide retirement benefits to their employees. The plan has become increasingly popular due to its flexibility and tax advantages.
Some of the companies in the 401k market include Fidelity Investments, Vanguard, Charles Schwab, T. Rowe Price, and Principal Financial Group. Show Less Read more
