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Review:

401(k)

overall review score: 4.5
score is between 0 and 5
A 401(k) is a retirement savings plan sponsored by an employer. It allows employees to save and invest a portion of their paycheck before taxes are taken out.

Key Features

  • Employer-sponsored retirement savings plan
  • Pre-tax contributions
  • Tax-deferred investment growth
  • Potential employer matching contributions

Pros

  • Provides a tax-advantaged way to save for retirement
  • Employer matching contributions can help boost savings
  • Investment options allow for potential growth over time

Cons

  • Limited investment options compared to other retirement accounts
  • Early withdrawal penalties may apply in some cases
  • Contributions are subject to annual limits

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Last updated: Thu, Jan 2, 2025, 04:12:25 AM UTC