What Kind Of Retirement Plan Is A 401K? 
The Internal Revenue Code -LRB- IRC -RRB- allows employers to establish defined contribution pension plans under section 401 -LRB- k -RRB- in these plans the assets are segregated into individual employee accounts . Often the employer will offer a range of investment options to the participant . The results of the account are dependent upon the investments selected . Some employers contribute to the plans , some do not . 