David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host:What is a 401K?
David John Marotta: A 401K is an investment plan that a company sets up and you are allowed to invest in, if you are in education, it is sometimes called 403B plan, those just refer to the tax code numbers, where they are specified. A 401K plan is like an IRA, you can role a 401K into an IRA after you have left the company, but it also allows your company to put matching funds in. So, lot of 401K, will match your contributions with there own contributions, usually up to 3%or 4% of your salary.