What is 401k? This is an investment account that many employers offer to their employees. The plan allows for pre-tax contributions, which means your money grows tax-free over time. These plans are beneficial not only to the employee but also to the employer because they are able to attract quality talent by offering this type of retirement account.
This article will talk about why it is vital for you and your employer to have a 401k plan in place if you don’t already have one!
It Is an Investment
This right here is an investment account that you open when a company employs you. 401k is an account with tax benefits for retirement savings. When you contribute money to the 401k, it reduces your taxable income and allows you to pay less in taxes now than what your salary would indicate.
If you have switched companies, you might be concerned about your 401k funds. Well, there are companies out there that can help you find lost money.
It Can Grow
To get the most out of your 401k, you should contribute enough to receive the full company match. Then you can decide to put more money in after that or not. The critical thing is to start saving as soon as possible, so the money has time to grow. That’s why it is important even if you are just starting out, especially if your employer offers a match on contributions.
It Can Help Lower Tax Liabilities
You can …