Does A 401K Count As A Retirement Plan? 
Yes , a 401K would count as a retirement plan , but ideally it will be supplemented by other vehicles as part of a complete retirement plan . 401 -LRB- k -RRB- s are qualified plans which means the money goes in pre-tax and is tax-deferred until it is taken out in retirement . 401 -LRB- k -RRB- s limit the amount of contribution and there are penalties if the money is accessed before the age of 59.5 . The funds saved in a 401 -LRB- k -RRB- are tax - deferred which is good , but it might not be your best option if you are in a higher tax bracket at retirement . Depending on how your 401 -LRB- k -RRB- is invested , there may be market-risk to be aware of as well . A 401 -LRB- k -RRB- can be an important part of a retirement plan , but it would be best to only contribute up to the company match and use a tax-free option or different vehicle to save above the company match . 