A 401k plan is a retirement plan that many people should look into as a way to save for retirement. When you have a 401k plan you determine the amount of your check that goes into it each month. This amount is limited to 15 percent of your check before taxes. This is also tax free money and may even help lower your tax bracket. The money is sometimes matched by your employer as an incentive to join the plan.
The money is invested by a third party on behalf of you. You get to pick the types of investments such as money market accounts, stocks and so on.
If you ever have the need for emergency cash you have the ability to get a “loan” from your 401k, but it is not the wisest thing. Also keep in mind that even if you leave your job, your 401k is still there and today many of them are protected against bankruptcy and such.