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401(k) Plan

A 401(k) Plan is a retirement savings account offered by employers that allows employees to save a portion of their salary before taxes are deducted. This means you can invest money for your future without paying taxes on it until you withdraw it, typically at retirement. Many employers also match a portion of your contributions, which boosts your savings. The funds can be invested in various options like stocks and bonds, and it's designed to help you build a nest egg for retirement. Withdrawals before age 59½ may incur penalties and taxes.

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    A 401(k) plan is a retirement savings account offered by many employers in the United States. It allows employees to save a portion of their paycheck before taxes are deducted, reducing their taxable income. The money is then invested, often with options like stocks or bonds, allowing it to grow over time. Employers may match employee contributions up to a certain amount, effectively adding free money to your retirement savings. Withdrawals can be made after reaching age 59½, but early withdrawals may incur penalties. The goal is to help individuals save for a comfortable retirement.