Understanding 401(k) Plans: Making the Most of Employer-Sponsored Retirement

Understanding 401(k) Plans: Making the Most of Employer-Sponsored Retirement

The Basics of 401(k) Plans: A Comprehensive Guide

401(k) plans are retirement savings accounts offered by employers to their employees. These plans allow individuals to save and invest a portion of their pre-tax income, thereby reducing their taxable income. Contributions made to a 401(k) plan are typically deducted directly from an employee’s paycheck, making it an easy and convenient way to save for retirement.