A 401k plan was a saving´s measure that was created in order to help people save for their retirement. It started in 1978, when it was first created and set as law. This savings program has been changed throughout the years since its inception, but the current characteristics of this savings plan are: 1. They are employer-sponsored programs, 2. Employees make salary deferrals to it, in order to save that money for their retirement. 3. Employers may make contributions to this program and may offer certain benefits for employees who accept the plan. 4. Contributions are made on a post-tax and/or pre-tax basis. 5. The earnings accruee and if a person wishes to withdraw from the savings account, they must pay certain fees and taxes. The correct answer here then is: True. This savings is created from the salary savings made each month by employees and they may be pre-tax or post tax.
