Complete the sentence with the correct information. One of the big advantages to a 401(k) plan is that ______.
a. 401(k) plans are rare enough that they are very valuable
b. the plan automatically increases in value by 500%
c. you don’t have to pay into a 401(k) with your own money
d. the amount you contribute reduces your taxable income
d. the amount you contribute reduces your taxable income
A 401(k) is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account.
