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What are the benefits of having a 401(k)?
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The primary benefit of having a 401(k) is that it provides an opportunity for individuals to save and invest money in a tax-deferred manner. This means that contributions are not subject to income taxes until they are withdrawn, which can provide greater financial flexibility. Additionally, many employers offer matching contributions to their employees’ 401(k) plans, which further increases the potential savings available. Finally, investing in a 401(k) plan allows individuals to take advantage of compound interest over time, providing additional growth opportunities.