A 401(k) is a workplace retirement plan. Money usually comes out of your paycheck before taxes if it is traditional, or after taxes if it is Roth, and then gets invested for retirement.
Many employers also match part of what you contribute, which is basically free money if you qualify. That match is often the first reason people should pay attention to the plan.
The short version: it is a tax-advantaged way to save for retirement through payroll.
Sources
This is general information, not professional financial advice. For decisions about your situation, talk to a qualified professional.
More in Money
Can Y’all Street outflank Wall Street?
Texas is building a real finance hub, but it is more likely to grow as a second center than replace Wall Street.
💰 Money 4 weeks ago 2 min readDo I have a spending plan?
You have a spending plan if you know what your money is supposed to do.
💰 Money 8 weeks ago 2 min readDo I have enough savings to handle a financial shock?
A good first test is one month of essentials, then three to six months.
💰 Money 8 weeks ago 2 min read