This type of plan is the most popular retirement plan in the United States of America. These plans are often offered to private companies. Both the employee and the employer may contribute the this plan. Often, the employer will match to a limit. 401(k) plans are deferred tax plans-they are contributed to pre-taxed and are taxed when they are taken out. The employee determines how much they want to contribute to this type of plan. The choices available in this plan are meant for the employee to decide upon.
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