Final answer:
A 401(k) plan offers a tax-deferred retirement savings account with various investment options and portability between employers.
Step-by-step explanation:
A 401(k) plan generally provides its participants with a retirement savings account that has a range of investment options. These plans allow both employer and employee contributions and the employee can invest these funds in various investment vehicles. The primary advantage of a 401(k) is that it is tax deferred, meaning the contributions are made before taxes and taxes are not paid until the money is withdrawn, usually during retirement. Additionally, 401(k)s are portable, which allows individuals to retain their retirement savings if they change employers.