401K Introduction and Overview - Rollover, Simple, Fidelity
What is a 401k?
The Internal Revenue Code was amended by Congress in 1978. Among the changes made was the addition of section 401(k), which dealt with the establishment of programs that would help with the retirement of business executives.
However, it soon became apparent that the type of retirement fund that had been developed was even better suited to workers. This was largely due to the fact that its contribution limits were far above those of Individual Retirement Accounts (IRA). It also allowed for employer contributions that matched at least some part of the employee contribution.