Bull market sign! Trump signed an executive order allowing 9 trillion US 401k pension funds to invest in cryptocurrency! Many brothers are curious, what is a 401K pension fund? A deferred tax retirement plan established in 1981, with relevant provisions in Section 401 of the National Tax Law, hence abbreviated as 401K. 401K is applicable to employees of private companies and is a supplementary pension insurance system jointly funded by employers and employees. It has become the most important employee retirement plan for private companies in the United States. The employer will set up a 401K special account for each employee, and employees can withdraw a certain percentage of their salary (about 1% to 15% salary, not exceeding the upper limit) to the account every month. The employer will also match a certain percentage of the amount to the employee's 401K account. The money invested in a 401K account does not need to be declared for tax purposes, and only employees who receive it at the designated age are considered income and need to declare personal income tax. At present, the scale of 401K is about 9 trillion yuan, and the financial products that can be purchased are: 1. Cannot purchase stocks or invest separately. 2. The optional financial products can only come from the 401k fund management company selected by the employer. This administrative order of Trump allows 401k pension funds to invest in cryptocurrency! In fact, it's not your own choice. Risk preference and specific product selection are not something you can determine. You can only choose within a limited range based on the products of the fund company locked in by your employer. Annual deposit limit: In 2025, the limit for contributions to the 401 (k) plan will be further increased to $23500, an increase of $500 from the previous year; ● Eligibility: The company has providers and there are no special restrictions on income Benefits: Delayed tax payment, exemption from income tax on deposit interest, dividends, and investment income in the account Minimum age limit for withdrawal: withdrawals can be made after the age of 59.5, with a 10% penalty for early withdrawal Mandatory withdrawal age: After reaching the age of 70.5, a portion of the funds must be withdrawn annually and cannot be deposited again, otherwise fines will be imposed (mainly to stimulate consumption). Special circumstances that can be withdrawn in advance: payment of large medical bills/becoming disabled/withdrawal of health insurance premiums after 12 weeks of unemployment/death of account holder/resignation, layoff, early retirement after the age of 55. You can apply for a loan from your own 401K account, but the disadvantage is that you need to pay two taxes (the income returned to the 401K account is after tax, and you will have to pay another tax when withdrawing in the future), and the loan interest cannot be offset against taxes. On the other hand, the interest on bank loans can be offset against taxes. The 401K account belongs to the employee, and upon resignation, the employee can transfer it to their own IRA account or to the designated 401K plan fund company of the next company.