A 401(ok) plan is a retirement financial savings plan supplied by many employers in the US. It permits staff to save lots of and make investments cash for retirement on a pre-tax foundation, decreasing their present taxable revenue. One of many key options of a 401(ok) plan is that employers might provide an identical contribution, the place they contribute a further amount of cash to the worker’s account primarily based on the worker’s personal contributions.
Nonetheless, even when an employer doesn’t provide an identical contribution, it could nonetheless be useful to contribute as a lot as attainable to a 401(ok) plan. Listed below are a couple of the explanation why: