as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
how do 401k handle rate of return
user
a 401(k) is an investment just like any other investment. you generally get two types of return lumped into that number, but there can be more and you should read your funds prospectus carefully. if you aren't investing in direct companies, you're using mutual funds for instance, then you should read the funds prospectus to see how they handle these situations for the underlying securities they hold for you. although i think this is the basic answer to the question as you asked.
assistant