401k retirement plans are employer sponsored investment accounts that allow workers to save money for retirement. How do they work? In short, they allow workers to designate a portion of each paycheck to be deposited into an investment account tax free. Since you don’t have to pay income taxes on the money you invest until after you take it out, 401k plans are a great way to grow your money for retirement.
For answers to some of the most commonly asked questions about 401k’s, read this full article.