What are the perks of a 401(k) plan?

What are the perks of a 401(k) plan?

Achieving your retirement dreams won’t happen by accident. In order to live the retirement lifestyle you dream about, you must start saving.

Here are a few perks of a 401(k) plan.

You are in control, you can contribute as much or as little as you want to your account.

Many employers offer to match a portion of what you save. They add extra money into your account based on how much you contribute.

The earlier you start investing, more time your money has to grow. Investing in a 401(k) early provides compound interest.

Contributions to a traditional 401(k) plan are taken out of your paycheck before the IRS takes its cut.

Besides boosting your savings power, pretax contributions to a traditional 401(k) will lower total taxable income for the year.

Even if you change jobs, the money you’ve contributed to your 401(k) and its earnings belong to you.