human
What are the benefits of having a 401(k)?
assistant
The most obvious benefit is that it can provide you with tax-deferred growth. This means that your contributions to the account are not taxed until they are withdrawn, usually at retirement or upon leaving your job. Additionally, if you choose to withdraw money before then, you may be able to avoid paying taxes altogether.2 Another advantage of a 401(k) is that it allows you to save for retirement early on in your career. This could potentially help you reach your goals faster than those who do not have access to a 401(k).3 Finally, contributing to a 401(k) can also give you an opportunity to build a nest egg that you can draw from when you retire. This can help ensure that you maintain your lifestyle and financial security during your golden years.