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Understanding 401(k) Benefits

There's a reason why the 401(k) is a popular retirement plan.

By Adam Levy – Updated Nov 2, 2024 at 6:40PM

Key Points

  • 401(k) plans offer high contribution limits, increasing to $23,500 in 2025, with extra contributions allowed for workers nearing retirement.
  • Savings in a 401(k) grow tax-free, maximizing investment growth without immediate taxes.
  • Many 401(k) plans match employee contributions, effectively boosting their retirement funds.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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