Is Password stored in plain text or not?

I am confused regarding using “other email” servers as an option. I read a post that after v 2.0 passwords aren’t stored in plain text in the database as in older versions. Is this accurate as I don’t see any reference on your site about this. If so, is there anything in wp-config that is recommended to further secure or it is all built in now and nothing is needed.

Thanks for clarifying.