Jul 11, 2019 - 12:22 AM
To combat the rising cost of pensions during the 1980's, the 401k account was born. Named after the subsection of the Internal Revenue Code by the same designation, a 401k account is simply a savings plan that permits workers to invest a portion of their pay before taxes. In addition to salary and health benefits, these accounts have become an important part of almost every comprehensive employment package. In many cases employers will match a percentage of the employee's contribution in an effort to lure and retain high-quality talent.