A 401(k) is considered to be a retirement savings plan that is typically sponsored by an employer. A 401(k) allows an employee to save and invest their money from their paycheck before the taxes are withheld. A 401(k) is controlled by you and you usually have some input as to how your money is invested. A 401(k) may offer you a variety of mutual funds that are comprised of stocks, bonds, and money market investments. A 401(k) is one way to save for retirement and to ensure that you have money invested for the future. A 401(k) has some advantages and benefits such as employer matching contributions, and tax deferred earnings. If you acquire a 401(k) plan thorough your employer, many employers will match a portion of your savings. Even if your employer doesn’t offer a matching program, the tax advantages of having a 401(k) is still a good way to save for retirement. When you invest a percentage of your paycheck to your 401(k), you will immediately be paying less in taxes to Uncle Sam. Since the investment dollars are taken out of your paycheck before the taxes are deducted, this makes your taxable income less and potentially lowers your overall tax bill. To determine whether or not you are eligible for a 401(k), you should talk to your employer and find out what your options are in regards to any retirement plans that they may offer to their employees.