What Type Of Retirement Plan Is A 401K? 
A 401 -LRB- k -RRB- is a defined contribution plan under The Employee Retirement Income Security Act of 1974 -LRB- ERISA -RRB- . It permits participants to contribute tax deductible contributions to their future retirement . A 401 -LRB- k -RRB- account accumulates tax deferred and is taxable at ordinary income tax rates upon distributions . 