401(k) - Bogleheads

A 401(k) plan is a type of employer-sponsored defined-contribution retirement plan. Its name comes from section 401(k) of the Internal Revenue Code[1] which defines it. It is also generally governed by Title I of the Employee Retirement Income Security Act of 1974 (ERISA). Some plans offer employer stock as an investment option, and/or contribute the employer match in the form of employer stock. Plans offering employer stock must offer at least three diversified investment options with materially different risk and return characteristics. They must allow diversification of elective deferral contributions immediately (at least quarterly) and allow diversification of employer contributions after three years of service by the employee. Keeping your 401(k) contributions in employer stock is not recommended, as you already have plenty of risk tied with the performance of your employer, and diversification or complete avoidance is strongly recommended. See, however, Net unrealized appreciati

A 401(k) plan is a type of employer-sponsored defined-contribution retirement plan. Its name comes from section 401(k) of the Internal Revenue Code[1] which defines it. It is also generally governed by Title I of the Employee Retirement Income Security Act of 1974 (ERISA). Some plans offer employer stock as an investment option, and/or contribute the employer match in the form of employer stock. Plans offering employer stock must offer at least three diversified investment options with materially different risk and return characteristics. They must allow diversification of elective deferral co