Why are 401(k) plans so popular?
401(k) plans are popular because it lets an employee allocate a certain amount of his or her salary to a retirement plan. They would have something to look forward to when they retire. This retirement nest egg is usually tax-free until the retired person decides to avail of it.
They can also decide the amount they want to contribute on their 401(k) plan. If times are rough, they can deduce the amount and just increase it later on. In moments where they need the money they can always take a loan against their 401(k) plan.
--- permission must be obtained from author Randy Yingger to re-publish ---
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