Is A 401K Considered A Retirement Plan? 
There are two basic forms of retirement plans . Defined benefit plans are plans where the participants do not have separate accounts and the retirement benefit is computed based upon a formula of several factors such as age , years of service and highest salary . A Defined contribution plan is a plan where the participant can contribute an amount into a plan where each employee has a separate account . This is what a 401 K plan is . The return on the plan is based upon the performance of the underlying investment and nothing is guaranteed . 