Is 401K Plan A Retirement Plan? 
Is a 401 -LRB- k -RRB- a retirement plan ? Yes , a 401 -LRB- k -RRB- is a retirement plan that has grown in use since the early 1980 's when they were created . Originally , 401 -LRB- k -RRB- plans were meant to supplement traditional pension plans that had been offered by employers . Over the years , that idea has changed 401 -LRB- k -RRB- s from supplemental to primary retirement plans for many employers . A 401 -LRB- k -RRB- is a defined contribution style plan . That means your employer provides the plan and possible contributions to it , but the employee is responsible for the outcome of their plan . 