About 401 K Retirement Scheme
401k is a retirement scheme where a worker pays a certain percentage of his/her salary towards a retirement plan and the employer gives an equivalent amount towards the same. The contributions are made through check-off system for the entire period the employee will be working until he/she retires. The name 401k was derived from the Internal Revenue Code which governs its operations. While internal revenue code rules and regulations stipulate that if a worker pays a certain amount towards the scheme the employer has to contribute a similar amount, an organization can decide to contribute towards the employees plan irrespective of whether the employee is contributing or not.







