We offer a 401(k) plan to all our employees. The 401(k) plan is a type of employer-sponsored retirement plan in the United States and named after a section of the U.S. Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money or earnings until withdrawal.
The employee elects to have a portion of his or her wage paid directly, or "deferred", into his or her 401(k) account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. The employee can generally re-allocate money among these investment choices at any time.