Investment Glossary
401k - 401k's are investment plans offered by some employers
to employees as a means of saving money towards retirement. As part of the
plan, employees are allowed to set aside a portion of their pay towards an
investment portfolio that they setup and configure. Typically, employers will
select to match an employees contribution, up to 50%.
Contributions made into a 401k account are not taxable so reduces the
employees tax liability. Also, these investments continue to grow tax-free
until withdrawn.
