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What is a 401(k) and how can I get one?
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A 401(k) is a retirement savings plan offered by many employers. It allows you to save money on a pre-tax basis, meaning that the money you contribute is not subject to income taxes until it is withdrawn. Contributions are typically made with pre-tax salary deductions, so they reduce your taxable income. The money in a 401(k) accumulates tax deferred, meaning that it is taxed at a lower rate when you withdraw it during retirement. You may also be eligible for employer matching contributions, which could significantly increase the amount of money saved over time.