“A 401(k) plan allows you to save money and lower your taxes,” said Paul Walker, author of “A Money Book Anyone Can Read.” When you contribute to a traditional 401(k), those contributions lower your taxable income for the year. Although you’ll have to pay taxes on the withdrawal...
The 401(k) plan is a popular way to save for retirement because of itstax advantages. With traditional 401(k)s, yourcontributions are made with pretax money, so your tax bill is reduced. With Roth 401(k)s, you makecontributions after paying income tax, but then you can make tax-free...