January 16th, 2012
401k: Lower tax to pay
The next benefit that you can get from 401k plan is the less tax that you have to pay to the government. You will not pay tax for the total amount of your earning but the tax will be withdrawn after the total salary is reduced by the monthly plan fee.
In addition to that, it will be much easier for you to put some of your monthly salary to your saving because the plan fee will be taken before you ever have a chance to get your hands on it. That makes the 401(k) one of the most painless ways to save for retirement.