If you're an employer looking to provide a retirement savings option for your employees or an employee planning for your retirement, a 401(k) plan can be an excellent choice.
A 401(k) plan is a retirement savings plan employers offer their employees. Employees can choose to contribute a portion of their pre-tax salary to the plan, and many employers also make contributions to the plan on behalf of their employees. The funds in the 401(k) plan are invested in various investment options, such as mutual funds or stocks, to earn a return on investment and grow the account balance over time.
There are multiple benefits of a 401(k) plan, both for employers and employees. Here are a few of the key advantages