So I've only heard about 401K.  Apparently it's supposed to be some sort of government financial aid program.  I have no idea.  Could someone please enlighten me?

Here's what I know about 401(k) plans:

They are a retirement account that you fund. Sometimes your employer will match your contributions, but that is becoming more rare in today's economy. If you withdraw your money before a certain age (59 1/2, I think?) you are severely penalized.

     A government program?  No, though there are some tax benefits.  It's a job benefit, if your employer offers it.  

    You might want to do a bit of research on the web.  Here's an explanation:

    http://en.wikipedia.org/wiki/401k

 the best part is, it's pre-tax dollars.  so it comes off your paycheck 1st, then your tax is figured.  and you don't get your hands on it, so you really save it!  my husband has saved huge amounts for retirement this way- even with the market crash.

Someone suggested to me I read this book called "Killing Sacred Cows" which talks about 401K's and who should and shouldn't use them.

 I've heard of that book, I think it was written by Garrett Gunderson.  I was told he thinks that they are bad.  Thanks for the information though it's helped me to understand.  Hmm, I've heard of a website that offers advice on what to do and what not to do with withdrawing your 401k.

 I apologize if this seems spammish, but I did a little bit of research and found a different website that helps to council you with your 401k.

401k Advice

It's a .org site so I think it's pretty reliable.