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I will start in a 401K plan with my employer. Half of paycheck will go to the fund, the other half to cover expenses. I receive Soc. Sec, and a very small pension. My debts amount to about...

In the United States, a 401 (k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401 (k) of the U.S. Internal Revenue Code. Periodical employee contributions come directly out of their paychecks, and may be matched by the employer.

An employer matching program is an employer's potential payment to an employee's 401 (k) plan dependent on the extent of an employee's participation in the plan. Contents 1 Definition 2 "100% of the first 6%" 3 Functions 4 Cons of 401 (k) plan 5 Pros of 401 (k) plan and employer matching program 6 References Definition

Many large employers will offer to match at least a portion of what you contribute to your 401(k) plan. These matching contributions are one of the best ways to boost your retirement savings, as...