Review:
401(k)s
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
401(k)s are retirement savings plans sponsored by employers that allow employees to save and invest a portion of their paycheck before taxes are taken out.
Key Features
- Employer matching contributions
- Tax advantages
- Investment options
Pros
- Tax-deferred growth
- Employer matching contributions
- Portability between jobs
Cons
- Early withdrawal penalties
- Limited investment options
- Subject to market fluctuations