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A 401(k) plan is a retirement savings plan offered by many employers in the United States. It allows employees to save and invest a portion of their paycheck on a pre-tax basis, reducing their current taxable income. The money saved in a 401(k) plan grows tax-deferred until it is withdrawn in retirement, at which point it is taxed as ordinary income.

There are many benefits to saving for retirement in a 401(k) plan. First, the money you save grows tax-deferred, which means that you don’t have to pay taxes on the earnings until you withdraw them in retirement. This can result in significant savings over time. Second, many employers offer matching contributions to their employees’ 401(k) plans. This means that your employer will contribute a certain amount of money to your plan for every dollar that you contribute, up to a certain limit. This can be a great way to boost your retirement savings.

A 401(k) is a retirement savings plan offered by many employers in the United States. It allows employees to save for retirement on a tax-advantaged basis. This means that contributions to a 401(k) are made before taxes are taken out of an employee’s paycheck. Earnings on 401(k) investments grow tax-deferred until they are withdrawn in retirement.

There are many benefits to saving for retirement in a 401(k) plan. First, contributions to a 401(k) are made on a pre-tax basis, which reduces an employee’s current taxable income. This can result in significant tax savings, especially for high-income earners.