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What are the advantages of having a 401k?
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The primary advantage of having a 401(k) is that it allows you to save for retirement early and tax-deferred. This means that any contributions made to your 401(k) are not subject to federal income taxes until they are withdrawn, which can provide an immediate financial benefit. Additionally, many employers will match a portion of your contributions, providing further incentive to participate in a 401(k). Another potential advantage of a 401(k) is the ability to choose from a variety of investment options, allowing you to tailor your portfolio to meet your individual needs and goals. Finally, 401(k)s offer the flexibility to withdraw funds at certain ages or upon termination of employment without incurring a penalty.