PROS. You get a tax deduction for any pretax contributions you make, reducing your taxable income. The account grows tax deferred. Assuming the 401(k) plan is well designed, you get access to institutional investment classes as opposed to retail investment classes under an IRA or retail account. read more
A 401(k) plan is an arrangement that allows an employees to contribute a portion of their wages to individual wages. 401(k) plans for saving for retirement are a common employee benefit. They offer you an opportunity for tax-deferred retirement savings, and give you access to a range of investment choices. read more
Pros of Investing in a 401k Retirement Plan at Work When I started my career over a decade ago and heard about my company’s 401k plan for the very first time, I didn’t enroll in it. I was nervous about having investments with an employer, because I didn’t understand what might happen to my money if I left the job, or if the company went out of business. read more
Now, to have a good idea about this matter, let us take a look at the pros and cons of 401ks. List of Pros of 401ks. 1. They offer matching funds. A lot of employers that offer 401k retirement plans also offer matching funds, which can boost the value of your account. read more