Should I Contribute To 401K?
Yes … Yes and Yes. Unless you are in a bind that you have absolute 100% need for your full pay check and it is a survival type situation.
Here are the reasons why
401k savings for retirement is a vehicle set up by US government to benefit workers so that they can retire with large savings as most of the Unions are now gone and so is the company funded retirement plan. So you have to take care of your retirement, retirement burden is on YOU.
Secondly, Uncle Sam is helping you with the 401k savings by deferring your tax until the retirement, so that puts time on your side with the 401k$ investments and earnings. That means your money grows tax free until the retirement.
Thirdly, most employers match the contribution you make, that is FREE money for you towards retirement.
Fourthly, you will have tax due on the 401k savings when you retire, when you retire, most probably you will be in a lower tax bracket, saving you further in taxes.
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