401(k) Plans At A Glance

401(k) Plans At A Glance

A 401(k) plan is an employer administered retirement plan which is listed under the Internal Revenue Code as a qualified retirement plan. The section of the Internal Revenue Code to allow people to save for retirement in a 401(k) withdrawal Another type of 401(k) plan is a Roth IRA

Yet another plan that is similar to a 401(k) is a 457 plan. These plans are available to government employees and some non-government organizations. The Internal Revenue Services does not consider 457 plans to be qualified retirement plans. However, like a 401(k), 457 plans allow the account holder to contributions into a deferred compensation retirement plan. The funds, whenever they are withdrawn, are always subject to federal income taxes.


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