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An employer-sponsored retirement savings plan with tax advantages. Traditional 401(k) contributions are pre-tax; withdrawals are taxed. 2024 contribution limit is $23,000 ($30,500 with catch-up).
Contributing $500/month to a 401(k) with a 50% employer match means $750/month invested. Over 30 years at 7% returns, that grows to over $850,000.
401(k) contributions reduce your taxable income now, and employer matches are essentially free money - an immediate 50-100% return.
Pro Tip: At minimum, contribute enough to get your full employer match. Then consider maxing out if you can afford it.