Traditional 401K

Traditional 401K

401(k) money plays an important part of the US investment universe. The total amount of retirement assets in the US is around $37 trillion made up largely of defined benefit (public and private sector), defined contribution, and individual retirement accounts, all of which amount to roughly $10-$13trn in size. 401(k) is a section of the US internal revenue code and is an employer sponsored pension scheme where the employer can match some of the individuals’ contributions; they also offer tax advantages for savers. They can be compared to Individual Retirement Accounts that savers set up on their own.

logo-animationlogo-animationlogo-animation

Related terms