The 401k plan, also known as the 401K provision, began in the early 1980s. It is a fully funded pension insurance system established by employees and employers jointly paying contributions.

The 401K plan refers to the newly added provisions of Section 401k of the Internal Revenue Code of 1978 in the United States. It was recognized by law in 1979, and implementation rules were added in 1981. It developed rapidly in the 1990s and gradually replaced the traditional plan.

The social security system has become the social security plan of choice for many employers in the United States.

Applies to private for-profit companies.

The 401k retirement plan is not a universal welfare plan. The 401k retirement plan is the product of the reform of the private enterprise pension system in the United States in the 1980s. This retirement plan replaced the past situation where the employer alone provided retirement benefits to employees, forming a relationship between the employer and the employee.

***The pattern of sharing retirement benefits.

Because the 401k retirement plan involves the tax deferral of retirement investments, the tax bureau has specially formulated regulations, and the relevant content is in the 401k section, so this retirement plan is also called the 401k retirement plan.

This plan is the most common employee retirement plan in the United States. The beneficiaries of this plan are mainly employees of private companies. In 2011, 60% of households approaching retirement age in the United States had a 401k retirement plan.