401(k)

401(k) plans are the most popular way for you to save for your retirement. Under this plan, you may choose to reduce your compensation and have these amounts contributed to the 401(k) on a pre-tax basis on your behalf. The sooner you start contributing toward your retirement, the more money you will gain in the long run through compound interest. You will earn profits on both the money you put in and the money you earn on your original contributions. The longer you have money in your 401(K) the more money you will grow.