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What are the benefits of having a 401k plan?
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The primary benefit of having a 401(k) plan is that it allows you to save for retirement early on. By contributing regularly, you can build up an emergency fund and potentially increase your savings rate over time. Additionally, 401(k) plans offer tax advantages as contributions may be made pre-tax, meaning you pay taxes only when you withdraw funds from the account in retirement. Finally, 401(k) plans often have higher contribution limits than other types of retirement accounts, making them a great way to get started with saving for retirement.