Nearly every job ad that is listed will have 401K listed as an incentive to work for a company.
Most people who read this do not know what it means.
Even people who have one do not understand it completely.
Whether you work for someone else or for yourself, a 401K is a great asset for your future.
It is like having a savings account and can be used for retirement.
If you have one where you work now, your employer might match what you put into it, each time.
This is generally how it works.
Not all employers do this and they are not under any obligation to do so.
This is a good thing to investigate if you are seeking employment.
If you already have a 410K plan with your employer and they do not match what you put into it, you can find another company to enroll in, outside of your employment.
Most companies do contribute to them, presently.
A lot of companies began contributing to the 401K so that they could be more competitive with their opponents (so to speak).
If you have this type of plan where you work, or one of your own, you can draw from it at any time.
There are penalty fees, though, depending on the situation.
If it is a financial hardship or medical reason and you can prove it, the penalties may be waived for early money withdrawals.
Basically, a 401K is a savings account that can be used at any time, with or without extenuating circumstances, or it can be saved for retirement, which is why most people enroll is this plan.