401K Investment? No, 401K Plan

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by Fern LaRocca CFP®

in 401K,401k Contribution Limits,401k Contribution Limits,401k limits,401K Maximum

It really irks me when people call their 410K plan an investment. Let’s get the facts straight. A 401K is the name of a type of an account. Just like IRA, Roth IRA, 4013b, etc. It is a type of account.

What you put into that account is an investment. It could be a stock, a mutual fund, a bond, or any other security.

The 401K plan like other plans have a Plan Document. This document spells out the restrictions, withdrawals, contribution limits, loan provisions and other information.

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