401K is a retirement plan that allows employees to save and invest for their retirement. Employees authorize their employers to deduct money for their paycheck before taxes are calculated to invest in investment options that they choose. The amount deducted is up to the employee and is invested during each pay period up to the limit set by the IRS. As the said amount is deducted before taxes are calculated, employees can lower the amount they pay each pay period in current taxes because they don't pay income tax on the money contributed to the 401K account. There are many benefits that may attract you to invest in this retirement plan such as: you can increase your take home pay; a company match can help your investment grow; automatic payroll deduction makes it easy to save; your investment choices are managed by professionals; most plans allow access to your contributions in an emergency; your money can go with you job to job. To get more information, visit this site and you will get detailed description about this type of retirement plan.