A 401(k)account means that the maximum amount of savings that can be deposited is $401,000.

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The name 401(k) refers to a section of the U.S. Internal Revenue Code and is a type of retirement savings plan sponsored by an employer. The maximum amount that can be contributed to a 401(k) plan in 2021 is $19,500, with a catch-up contribution of $6,500 for those over the age of 50. Therefore, the statement that the maximum amount is $401,000 is false.

A 401(k)account Means That the Maximum Amount of Savings That