O401(k) plans are kind of a retirement saving plans which are mainly funded by contributions from your employer. This contribution is usually done in the form of pre-tax salary and accumulated tax free funds until withdrawn. Usually companies, tax exempt and non-profit organizations can formulate these plans for employees. As you protect your home through a secured insurance such as Debenhams house insurance, you need special plans to build up enough savings for your retirement, too. And 401(k) plans are the perfect way for a tension-free retired life.
Self-employed individuals mostly have fewer options when looking for a retirement plan. Their choices are mostly limited to IRAs like SEP, SIMPLE, Roth etc or the Individual 401(k) plan. However most of these plans (except Roth) are made of tax deferred contributions where the money is taxed on making a withdrawal.