401K Overview and Retirement Plans
What is a 401k Plan?
Most standard pension plans are limited by highly structured payments and the inability to choose different investment types. The Internal Revenue Code, in section 401k provides for a program that gives retirement benefits with much better flexbility.
401k plans allow you to put tax-defferred funds from every paycheck into an investment of your choice, under the supervision of your employer. Not only can you choose how your money will be increased over the years, but you can potentially increase the final yield. The investment options for 401k plans are numerous, ranging from mutual funds to bonds to money market funds. You also have the option to change your investment at any point during the life of the 401k plan.