What Is A 401 K Retirement Plan? 
401K plans have been one of the primary ways people who work save for retirement . It is what is known as a qualified plan meaning that it is subject to government enforced rules and regulations regarding how money goes into it , how much can go in , how it comes out and how much at one time . Employers offer these plans and agree to put in a certain amount -LRB- in some cases , not all -RRB- so that an employee can grow their nest egg while working . The funds grow tax deferred -LRB- no taxes due till funds are distributed to employee -RRB- , typically have options as to where you will invest them and traditionally accumulate over time . You can ask your employer about their 401K plan if they offer one . You usually have to work with them for a few months or a year before you beome eligible to join . 