<prompt> Human: Sorry if this is common knowledge. I never had a 401k before but my current employer offers one wmatching. I guess I understand the concept but Im just wondering what happens to the money once its contributed?  <response>: I dont think you do understand the concept. A 401k is not in itself an investment, but rather a program that offers investment choices, some of which may offer interest, some of which may offer capital gains or losses. 