401 (k)

Nick Name
401k

A 401(k) is a qualified retirement plan that allows employees to divert a portion of their salary into long-term investments. A defined-contribution plan on a tax deferred basis, it has grown to become the popular type of employer-sponsored retirement plan in America. As only few other plans can match the relative flexibility of the 401(k), it allows you to control how your money is invested. Most 401(k) plans offer a spread of mutual funds composed of stocks, bonds, and money market investments, with the most popular option tends to be target-date funds. However, the biggest drawbacks of a 401(k) are plan fees and limited investment options.

Asset Classes

Loan

Entities

AE Wealth Management
Advantage Gold
Adviser Investments
Carroll Financial
Carver Financial Services
Edelman Financial Engines
Flexible Plan Investments
GFM Asset Management
Guild Investment Management
Hightower Advisors
Investment Counsel Company
Macroclimate®
Mainstay Capital Management
Manning & Napier
Professional Planning Group
RIA Advisors
Riverwater Partners
SGL Investment Advisors
Satovsky Asset Management, LLC
The DeRosa Group
Treasury Partners
oXYGen Financial

People

Bob Froehlich
Bruce Burrows
Charles Noble III
Charles Sizemore
Damion Lupo
Daniel Zajac
David Fried
Edwin Choi
Jeff Massey
Jerry Wagner
Jim Blankenship
Jonathan DeYoe
Kevin Myeroff
Larry Swedroe
Mark Cortazzo
Mark Smith
Martin Gruber
Morgan Paxhia
Moss Crosby
Neal Frankle
Randy Carver
Ric Edelman
Roger Wohlner
Ron Stenger
Sophia Bera
Steven Van Metre
Susan Williams
Ted Davis
Ted Siedle

Publications

21st Century Wealth
A 401(k) Owner's Manual
Common Sense Investing
Fidelity Investor
Fight For Your Money
Getting Your Financial Ducks In A Row
How to Retire Rich
Investing Made Simple
Learn to Earn
Mutual Fund Mastery
One Hour Investor
Peak Income
Plant Your Money Tree
Retirement Daily
Retirement Planning QuickStart Guide
Save More Tomorrow
Start Over, Finish Rich
The 3% Signal
The Automatic Millionaire
The Bogleheads' Guide to Investing
The Business Owner's Guide to Financial Freedom
The Complete Idiot's Guide to Socially Responsible Investing
The Emergence of Numerical Weather Prediction
The Four Pillars of Investing
The Power of Zero
The Ric Edelman Show
The Road to Wealth
The Simple Path to Wealth
The Truth about Retirement Plans and IRAs
The Ultimate Retirement Guide for 50+
Unconventional Investing
Unshakeable
What Every Fidelity Investor Needs to Know

  • Although 401k income is not taxed when you earn and contribute it, it is taxed at ordinary rates when you withdraw
  • 401(k)s are commonly used for safe, secure and comfortable asset growth (not risky assets)