A 401(k) plan is a retirement savings plan offered by many employers in the United States. It allows employees to save and invest money for retirement on a pre-tax basis, reducing their current taxable income. One of the key features of a 401(k) plan is that employers may offer a matching contribution, where they contribute an additional amount of money to the employee’s account based on the employee’s own contributions.
However, even if an employer does not offer a matching contribution, it can still be beneficial to contribute as much as possible to a 401(k) plan. Here are a few reasons why: