human
Is a 401(k) the same as a 401?
assistant
Yes, a 401(k) is the same as a 401. A 401(k) is an employer-sponsored retirement savings plan that allows employees to save for retirement. The 401(k) is often referred to as a "defined contribution" plan because it provides a defined benefit upon retirement. In contrast, a 401 is a type of pension plan offered by employers in which the employee's contributions are invested and grow tax deferred until they are withdrawn at retirement.