What is a 401(k) plan?
A 401(k) plan is a retirement plan offered by an employer designed to help employees save for retirement.
What are personal 401(k) plans?
A personal 401(k) plan is also called an individual or solo plan. With these plans you are both the employee and employer. You can contribute more than in a traditional plan because you can match your own contributions.
What is the difference between a Roth 401(k) and traditional 401(k)?
With a Roth 401(k), taxes are paid as money is put into the retirement account. With a traditional 401(k), taxes are paid as money is taken out.
Are there other retirement savings plans other than a 401(k) plan?
Alternatives to 401(k) plans include traditional IRAs, Roth IRAs, pension plans (if your employer offers one), and 403(b) retirement plans for employees of non-profit organizations.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.