40 1(k) plan is a retirement savings plan in the United States, which provides enterprises with a way for employees to save money for retirement. This plan is named after Article 40 1(k) of the International Retirement Code, which provides tax incentives for enterprises and encourages employees to save for retirement.

Main features and advantages of 40 1(k) plan:

1. Savings amount: employees can deposit a part of their pre-tax income into account 40 1(k), which will be exempt from personal income tax. Under normal circumstances, both employees and employers can contribute to the 40 1(k) account, but the annual contribution amount is limited.

2. Investment options: 40 1(k) plans usually provide a variety of investment options, such as stocks, bonds, funds, etc. , so that employees can choose investment strategies according to their risk tolerance and investment objectives.

3. Tax preference: employees' funds and investment income deposited in account 40 1(k) can be exempted from personal income tax until they retire. In addition, some employers will match employees' contributions and provide additional incentives.

4. Retirement income: Employees can withdraw funds from account 40 1(k) as part of retirement income after retirement. Usually, the withdrawal amount needs to pay personal income tax at a certain tax rate.

It should be noted that the 40 1(k) plan also has some restrictions, such as the annual payment ceiling, withdrawal age, withdrawal amount and so on. In addition, investment risks also need to be borne by employees themselves, and investment strategies need to be selected according to their own risk tolerance.

In a word, 40 1(k) plan is an effective retirement savings tool, which can help employees prepare for retirement. However, when employees participate in the 40 1(k) plan, they need to fully understand the relevant laws and regulations and investment risks to ensure that their retirement savings can achieve long-term stable growth.