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 Also, these investments continue to grow tax-free until withdrawn.

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