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What is a 401k plan, and how does it work?
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A 401(k) plan is a retirement savings plan offered by an employer that allows employees to save for retirement. Contributions are made pre-tax, meaning the money is taken out of your paycheck before taxes are calculated. The money saved in the account can be withdrawn at any time, tax free, when you retire or leave the company. There are many different types of 401(k) plans, such as traditional, Roth, SIMPLE, etc., each with its own benefits and rules.