What is a 401k? You may heard it in the context of taxes and financials before, but a 401k, in short, is a retirement plan. In the U.S, filing a 401k allows you to save up retirement assets from your annual paychecks. Before you receive your paycheck, your employer will take a certain percentage from your salary, this money will go to your pension and can be retrieved once you turn 65. In some cases, an individual can access their pension earlier than the age of 65 depending on how high their income is and how long they’ve worked for. Filing a 401k can be very helpful if you are not an avid saver or wish to have a backup retirement plan. Despite its usefulness, it is still a good idea to have another savings plan in place, as a pension plan is not always enough to cover basic expenses after retirement.