401K Essay, Research Paper
401K, the retirement savings plan turned 20 this month. It has become the centerpiece retirement vehicle for millions of employees since it was kicked off on January 1, 1981.
A 401K is a retirement plan set up by employers & named after the part of the Internal Revenue Code that spells out the rules- section 401, paragraph K.
When you join a 401K you agree to contribute part of your salary or any gains on your money until you withdraw it at retirement.
As an added attraction of the 401K is that some employees offer a match, meaning that for every dollar you save up to a certain amount, your boss will also make a contribution, which could range from 10 cents to 50 cents up to $1. This essientially is free money to you.
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