There are many similarities between the 401(K) and PF 1.Both are meant for Future Nest Eggs 2.Both are Near Impossible to Penetrate 3.Both are extremely secure by the Governments of the Country           Here are some of the differences: 1.In the case of PF - Both the contributions are Tax-Free. In the case of 401(K) - the employee contribution is tax-free, but the employer contribution will be taxed. 2.In the case of PF - The Govt. invests the money in the fund at its discretion, and 100% of decisions are made by the Govt. in the case of 401(K) - the investment decisions are made by the contributor (Yourself), and you have over 30–35 avenues of investing your money under the 401(K) plan - so the onus is mostly on you rather than on the Govt. 3.PF Payout is taxed by the Government at the time of Payout, but I am not sure if the 401(K) payout is taxed by their Government or not.