TAX-FREE CONTRIBUTIONS MAKE THE 401(k) POPULAR
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The 401(k) is a very popular retirement plan because
both employers and employees can contribute without taxation.
It is becoming more popular with employers who want to offer
retirement benefits but who cannot afford a traditional defined
There are many variations on the 401(k) plan formula
that make the plan flexible enough for almost any employer.
The plan distribution options also make it very attractive to
employees who may or may not remain with the same employer until
This concludes the tutorial on 401(k) plans.
For more information on related topics, check out other tutorials
in the retirement planning section. Click here to learn even more about this topic with the Encyclopedia of Personal Finance™