The 401K name has been taken from the Internal Revenue Code of 1978. The "Employee Benefits Security Administration" of the Department of Labor has administered The operation of the 401K.
The 401K plan contains many advantages. The first and important one is that it is possible for any employee to contribute his pre-tax money which will reduce the tax payable in each paycheck. In addition of that, the company's contribution & any increment of the fund will be free of tax until its withdrawn.
Check the video below for more information about 401k plan :
