401(k)
Also called: 401k, 401 k, 401(k) plan, retirement plan
A savings plan for when you stop working, offered by your job. Money comes right out of your check and can grow for years.
Example
Each payday, 5% of your pay goes into your 401(k) before you even see it.
Why it matters
If you change jobs, take your 401(k) with you. Don't cash it out early, or you may pay taxes and fees.
Want help with this?
Join Guapify free to ask questions about 401(k), use free Money Tools and learn with people who get it.
Join Guapify freeOne tap with Google. No credit card.
Members get more
Keep learning
More in Investing
Bond
A loan you give to a company or the government. They pay you back later, with interest.
Compound Interest
When you earn money on your money and also on the money it already earned. Over time, it grows faster and faster.
Diversification
Spreading your money across many kinds of investments. If one does badly, the others can help.
Dividend
Money some companies pay to people who own their stock, often every few months. It is a share of the profit.
For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.