Re: what is a 401k plan?

A 401k plan is a tax-deferred savings plan for retirement. It is a US 
savings instrument setup by the IRS.

When people advertise a generous 401K plan, that usually means they 
will do "matching". So for every $100/month you put into your 401k, the 
company will put in $100 worth of company stock or cash, etc.,. Though, 
when a company matches with stock, you can't get access to it until 
your are vested (that is, its not like they are just handing you a free 
$100 in stock). Vesting may be that you stay with the company for three 
years or more.

-John


On May 31, 2004, at 5:16 AM, Jose Alves de Castro wrote:

> Hello, everybody.
>
> I've seen this (or something similar) on some job adds:
>
>> we offer a generous 401k plan
>
> They call it "generous", so it should be a good thing, but I have no
> idea whatsoever of it means... :-)
>
> Can anyone enlighten me, please? :-) What is a 401k plan? :-)
>
> Regards,
>
> Jose Castro
>
> -- 
> José Alves de Castro <[email protected]>
> Telbit - Tecnologias de Informação
>
>
>