# 401(k)

*Retirement & Benefits — Finicade finance glossary*

A 401(k) is a US workplace retirement plan funded by payroll deductions, usually with an employer match and a tax break on contributions. Traditional contributions cut this year's taxable income and are taxed on withdrawal; Roth contributions do the reverse. Its structural weaknesses are a menu chosen by your employer and fees you didn't negotiate, which is why checking the expense ratios of the funds on offer is the highest-value hour you'll spend on it.

**Also known as:** 401k, 401(k) plan, workplace pension

**Related terms:** [Employer Match](https://finicade.com/glossary/employer-match), [Traditional IRA](https://finicade.com/glossary/traditional-ira), [Roth IRA](https://finicade.com/glossary/roth-ira), [Vesting](https://finicade.com/glossary/vesting), [Contribution Limit](https://finicade.com/glossary/contribution-limit), [Tax Deferral](https://finicade.com/glossary/tax-deferral)

Source: https://finicade.com/glossary/401k