the 41K plan, also known as the 41k clause, started in the early 198s, and is a fully funded pension insurance system established by employees and employers.

according to this plan, the enterprise will set up a special 41K account for its employees, and employees will take out a certain percentage of their salary and deposit it, while enterprises will generally deposit the corresponding funds according to a certain percentage (which cannot exceed the amount deposited by employees). At the same time, enterprises provide employees with three or four different portfolio investment plans.

1.41K plan funds can be invested in financial products such as stocks, funds, annuity insurance, bonds and special time deposits. Employees can choose their own investment methods, and their investment risks are borne by employees. Usually, employees of large American companies are more willing to buy shares in their own companies.

2. The income deposited in the employee's 41K account is pre-tax, and the income deposited in the 41K in that year does not need to be taxed. Of course, it is not tax-free, but tax payment is postponed, because tax is still required when withdrawing the 41K at retirement.

3.41K pensions are all invested by employers, and employees can also deposit part of their wages into 41K accounts. Because of the delay in tax payment, the federal government has restrictions on the proportion and total amount of investment in 41K, and the total amount of deposits has increased every year. The deposit limit for 41K in 219 is $19,.

4. When employees retire, they can choose to collect the funds in the account in one lump sum, in installments or turn them into deposits. After employees in private enterprises retire, enterprises will no longer bear the expenses of their pensions, which can effectively reduce the human resource costs of enterprises. 5. If an employee resigns after establishing a 41K account, he can move the account to a professional financial institution for management. Of course, if the employee finds a new job, he can transfer the 41K account to a new company, but he has to charge a certain management fee.

6. Some people regard the domestic personal tax deferred pension insurance as China's version of the 41K plan. If it is formally implemented nationwide, its scale will be much higher than that of the United States.