understanding plans

401(k) is the section of the Internal Revenue Code that allows employees to participate in a retirement savings plan. Contributions are tax-deferred, and interest and earnings accumulate on a tax-deferred basis. 401(k) plans are probably the fastest growing mode of retirement planning in the country. Employers find the 401(k) retirement plan cost-efficient and an attractive addition to their benefits package. Employer and employee contributions to a 401(k) retirement plan can accumulate and compound to create a comfortable tomorrow.