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    dumewick's Avatar
    dumewick Posts: 1, Reputation: 1
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    #1

    Dec 24, 2008, 09:20 AM
    401(k) and retirement plan
    What is the difference between 401(k) plan and Retirement plan?Is this the same or different?
    FrankK's Avatar
    FrankK Posts: 23, Reputation: 2
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    #2

    Dec 24, 2008, 10:30 AM
    "Retirement plan" is a general term that could refer to a specific investment vehicle such as a 401k. 401k is a specific investment vehicle sanctioned by the federal government that allows employers to place employee wages into a mutual fund (or bond fund or individuals stocks) which then grows tax free until it is withdrawn in retirement. For more information see: 401(k) - Wikipedia, the free encyclopedia

    There are a lot of good books out there to help you understand these issues. A great place to start is "Personal Finance for Dummies." I know the title is offputting, but the substance is great. I hope this helps.
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