{"id":68459,"date":"2023-02-27T14:43:31","date_gmt":"2023-02-27T09:13:31","guid":{"rendered":"https:\/\/www.the-next-tech.com\/?post_type=web-story&#038;p=68459"},"modified":"2023-02-27T14:43:37","modified_gmt":"2023-02-27T09:13:37","slug":"what-is-401k-plan-and-what-are-its-benefits","status":"publish","type":"web-story","link":"https:\/\/www.the-next-tech.com\/web-stories\/what-is-401k-plan-and-what-are-its-benefits\/","title":{"rendered":"What Is 401(k) Plan and What Are Its Benefits?"},"content":{"rendered":"<p><html amp=\"\" lang=\"en\"><head><meta charSet=\"utf-8\"\/><meta name=\"viewport\" content=\"width=device-width,minimum-scale=1,initial-scale=1\"\/><script async=\"\" src=\"https:\/\/cdn.ampproject.org\/v0.js\"><\/script><script async=\"\" src=\"https:\/\/cdn.ampproject.org\/v0\/amp-story-1.0.js\" custom-element=\"amp-story\"><\/script><link href=\"https:\/\/fonts.googleapis.com\/css2?display=swap&amp;family=Merriweather%3Awght%40700&amp;family=Open+Sans%3Awght%40700\" 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aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#e5e4ea\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-d07dcf2b-1df9-41df-8197-580777224642\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:-8.98058%;top:2.10356%;width:118.20388%;height:118.12298%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-44f8798d-26f2-49bf-adb3-83d8d7533f38\">\n<div style=\"position:absolute;width:100.11696%;height:100%;left:-0.05848%;top:0%\" data-leaf-element=\"true\"><amp-img layout=\"fill\" src=\"https:\/\/img.freepik.com\/free-photo\/close-up-retirement-glass-container-full-coins-white-background_23-2147919306.jpg?w=360&amp;t=st=1677487598~exp=1677488198~hmac=2acc2765bb95fec808a212c4f9a6f9f1c9c1ed14c40b2acff0353edfe46be07d\" alt=\"close-up-retirement-glass-container-full-coins-white-background_23-2147919306.jpg\"><\/amp-img><\/div>\n<\/div>\n<\/div>\n<div style=\"position:absolute;pointer-events:none;left:12.37864%;top:6.95793%;width:75%;height:17.63754%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0;border-radius:0.6472491909385114% 0.6472491909385114% 0.6472491909385114% 0.6472491909385114% \/ 1.834862385321101% 1.834862385321101% 1.834862385321101% 1.834862385321101%\" id=\"el-ad0cf650-38d9-42da-8b50-4622234550c9\">\n<h2 class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:0.2766990291262126% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.485437em;line-height:1.2;text-align:center;padding:0;color:#000000\"><span class=\"ez-toc-section\" id=\"What_Is_401k_Plan_and_What_Are_Its_Benefits\"><\/span><span><span style=\"font-weight: 700; color: #a4133c\">What Is 401(k) Plan and What Are Its Benefits<\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"9c70289e-645e-4577-b960-29b3798a0a30\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-cb33d8a6-a81a-4ec7-a83c-a2e9a77ed52a\",\"keyframes\":{\"transform\":[\"translate3d(-115.55555%, 0px, 0)\",\"translate3d(0px, 0px, 0)\"]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.4, 0.4, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-375a083c-279d-4381-8a25-d8dc3bc18584\",\"keyframes\":{\"opacity\":[0,1]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.4, 0.4, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-1a67d50d-9aaa-4b41-bd79-249e0f3b9949\",\"keyframes\":{\"transform\":[\"scale(0.15)\",\"scale(1)\"]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.4, 0.4, 0.0, 1)\",\"fill\":\"forwards\"}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#f3d9e1\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-d18addb3-0e83-4611-950c-97a4057636ef\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:11.8932%;top:28.15534%;width:76.45631%;height:43.68932%;opacity:1\">\n<div id=\"anim-cb33d8a6-a81a-4ec7-a83c-a2e9a77ed52a\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:translate3d(-115.55555%, 0px, 0)\">\n<div id=\"anim-375a083c-279d-4381-8a25-d8dc3bc18584\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:0;--initial-transform:none\">\n<div id=\"anim-1a67d50d-9aaa-4b41-bd79-249e0f3b9949\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:scale(0.15)\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" id=\"el-7ea61911-b730-45a9-b503-6897ff103bd5\">\n<h2 class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:0.9790476190476189% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.388350em;line-height:1;text-align:center;padding:0;color:#000000\"><span class=\"ez-toc-section\" id=\"A_401k_plan_is_a_type_of_retirement_savings_plan_sponsored_by_employers_for_their_employees_The_plan_allows_employees_to_make_pre-tax_contributions_from_their_paychecks_which_are_then_invested_in_a_range_of_options_offered_by_the_plan\"><\/span><span><span style=\"font-weight: 700; color: #a4133c\">A 401(k) plan is a type of retirement savings plan sponsored by employers for their employees. The plan allows employees to make pre-tax contributions from their paychecks, which are then invested in a range of options offered by the plan.<\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"3de20ec4-573a-4eee-b006-8cca8f485992\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-983955cb-5192-4c43-ab39-b1d66aaeaa84\",\"keyframes\":{\"transform\":[\"translate3d(115.97445%, 0px, 0)\",\"translate3d(0px, 0px, 0)\"]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.4, 0.4, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-e6d85e75-76d6-48d5-b8af-d0dc9e2385f7\",\"keyframes\":{\"opacity\":[0,1]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.4, 0.4, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-510cd6ea-bd7c-47a3-812b-e6df227db528\",\"keyframes\":{\"transform\":[\"scale(0.15)\",\"scale(1)\"]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.4, 0.4, 0.0, 1)\",\"fill\":\"forwards\"}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#fef9ef\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-a8a8e735-8563-41f4-9dc2-93a2db3b4714\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:11.8932%;top:28.64078%;width:75.97087%;height:42.71845%;opacity:1\">\n<div id=\"anim-983955cb-5192-4c43-ab39-b1d66aaeaa84\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:translate3d(115.97445%, 0px, 0)\">\n<div id=\"anim-e6d85e75-76d6-48d5-b8af-d0dc9e2385f7\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:0;--initial-transform:none\">\n<div id=\"anim-510cd6ea-bd7c-47a3-812b-e6df227db528\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:scale(0.15)\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" id=\"el-9caf37cd-77cd-4b41-8003-6bc91b09c3d7\">\n<h2 class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:1.3137380191693284% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.517799em;line-height:1;text-align:center;padding:0;color:#000000\"><span class=\"ez-toc-section\" id=\"The_maximum_contribution_limit_for_a_401k_plan_in_2022_is_20500_for_employees_under_age_50_and_27000_for_employees_age_50_and_older\"><\/span><span><span style=\"font-weight: 700; color: #3a566e\">The maximum contribution limit for a 401(k) plan in 2022 is $20,500 for employees under age 50 and $27,000 for employees age 50 and older.<\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"29632450-d762-42b2-95f4-14f618098ad3\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-53104df9-779d-4854-afab-54734d98a6c7\",\"keyframes\":{\"opacity\":[0,1]},\"delay\":200,\"duration\":1400,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-1ba455b6-e62d-46d1-a503-8214d117ba16\",\"keyframes\":{\"transform\":[\"translate3d(0px, -161.34824%, 0)\",\"translate3d(0px, 0px, 0)\"]},\"delay\":200,\"duration\":1400,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#211f1e\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-11ad12f7-cccc-4834-9e35-27f731549c28\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:11.8932%;top:23.30097%;width:76.45631%;height:53.07443%;opacity:1\">\n<div id=\"anim-53104df9-779d-4854-afab-54734d98a6c7\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:0;--initial-transform:none\">\n<div id=\"anim-1ba455b6-e62d-46d1-a503-8214d117ba16\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:translate3d(0px, -161.34824%, 0)\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" id=\"el-c9a907a1-ba87-45f2-80d5-daf2bb2f277e\">\n<p class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:0.7705543154761905% 0;font-family:&quot;Open Sans&quot;,sans-serif;font-size:0.485437em;line-height:1.2;text-align:center;padding:0;color:#000000\"><span><span style=\"font-weight: 700; color: #ffffb7\">Many employers offer a matching contribution, which means they will contribute a certain percentage of an employee&#8217;s contribution to the plan.<\/span><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"ea08d01f-f984-42e7-ab9d-5c7dbe469c55\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-bfac245a-d1ea-478a-8e4c-1a776e471edb\",\"keyframes\":{\"opacity\":[0,1]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-0af33789-03a8-465a-9e4f-842c2bc42e5d\",\"keyframes\":{\"transform\":[\"translate3d(-115.2381%, 0px, 0)\",\"translate3d(0px, 0px, 0)\"]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#ffece3\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-a21ae0f3-86e4-4b2d-aaea-c2a1ac24b0c2\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:11.65049%;top:29.93528%;width:76.45631%;height:39.96764%;opacity:1\">\n<div id=\"anim-bfac245a-d1ea-478a-8e4c-1a776e471edb\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:0;--initial-transform:none\">\n<div id=\"anim-0af33789-03a8-465a-9e4f-842c2bc42e5d\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:translate3d(-115.2381%, 0px, 0)\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" id=\"el-b8bff21a-b57e-4e3f-94de-b5347d40f101\">\n<p class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:0.9790476190476189% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.388350em;line-height:1;text-align:center;padding:0;color:#000000\"><span><span style=\"font-weight: 700; color: #ff3101\">401(k) plans offer a variety of investment options, including mutual funds, index funds, and target-date funds. Participants can choose their own investment mix based on their risk tolerance and retirement goals.<\/span><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"c0ebd45f-508c-4ce9-99bd-8460c96c979c\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-edbdd520-a0c3-4f9c-90c3-77760f68f14e\",\"keyframes\":[{\"transform\":\"scale(1)\",\"offset\":0},{\"transform\":\"scale(1.5)\",\"offset\":0.33},{\"transform\":\"scale(0.95)\",\"offset\":0.66},{\"transform\":\"scale(1)\",\"offset\":1}],\"delay\":0,\"duration\":1450,\"easing\":\"ease-in-out\",\"fill\":\"both\",\"iterations\":1}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#bcebee\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-c2c876c6-7cdf-48c6-a360-0cb4e339f634\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:11.8932%;top:25.56634%;width:76.45631%;height:48.54369%;opacity:1\">\n<div id=\"anim-edbdd520-a0c3-4f9c-90c3-77760f68f14e\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:scale(1)\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0;border-radius:0% 0% 0% 0% \/ 0% 0% 0% 0%\" id=\"el-f07d9114-dc0f-46d6-bbc3-218c2da07eff\">\n<p class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:-0.544761904761904% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.388350em;line-height:1.4;text-align:center;padding:0;color:#000000\"><span><span style=\"font-weight: 700; color: #800f2f\">401(k) plans offer portability, meaning that employees can take their savings with them if they change jobs. Some 401(k) plans allow for loans, which can be a useful source of emergency funds.<\/span><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"a963ecdb-603b-4ef1-a1cc-615bc757f441\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-00c2bdb6-2108-4611-aaf2-8617eeb68a57\",\"keyframes\":{\"opacity\":[0,1]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-7e5a89fb-bf87-4ff6-931e-428e3b7ec670\",\"keyframes\":{\"transform\":[\"translate3d(118.27243%, 0px, 0)\",\"translate3d(0px, 0px, 0)\"]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#2d2a35\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-1b621f26-b437-4fb2-ade7-1ae404c623cd\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:13.59223%;top:29.12621%;width:73.05825%;height:41.58576%;opacity:1\">\n<div id=\"anim-00c2bdb6-2108-4611-aaf2-8617eeb68a57\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:0;--initial-transform:none\">\n<div id=\"anim-7e5a89fb-bf87-4ff6-931e-428e3b7ec670\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:translate3d(118.27243%, 0px, 0)\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0;border-radius:0% 0% 0% 0% \/ 0% 0% 0% 0%\" id=\"el-5d925212-8a70-4aef-bdfc-a99a889d38f9\">\n<h1 class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:0.34534883720930243% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.436893em;line-height:1.18;text-align:center;padding:0;color:#000000\"><span class=\"ez-toc-section\" id=\"With_a_traditional_401k_plan_contributions_are_tax-deductible_in_the_year_they_are_made_but_withdrawals_in_retirement_are_taxed_as_ordinary_income\"><\/span><span><span style=\"font-weight: 700; color: #fff0d8\">With a traditional 401(k) plan, contributions are tax-deductible in the year they are made, but withdrawals in retirement are taxed as ordinary income.<\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"b655bcb0-7903-48d3-b3df-eab0f6835fac\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-1047cd85-e137-4025-b316-7fb1e00e1ea2\",\"keyframes\":{\"opacity\":[0,1]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-8a089dad-991c-4ce3-a998-b6e56e913747\",\"keyframes\":{\"transform\":[\"translate3d(0px, -217.45308%, 0)\",\"translate3d(0px, 0px, 0)\"]},\"delay\":0,\"duration\":1500,\"easing\":\"cubic-bezier(0.2, 0.6, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#d4e3fc\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-e2e71255-4dcb-444c-8646-0bc9e23b3f95\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:11.65049%;top:32.36246%;width:76.94175%;height:35.43689%;opacity:1\">\n<div id=\"anim-1047cd85-e137-4025-b316-7fb1e00e1ea2\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:0;--initial-transform:none\">\n<div id=\"anim-8a089dad-991c-4ce3-a998-b6e56e913747\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:1;--initial-transform:translate3d(0px, -217.45308%, 0)\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0;border-radius:0% 0% 0% 0% \/ 0% 0% 0% 0%\" id=\"el-c61499e7-21f1-4a00-b9f1-1afbd72d0f7f\">\n<h2 class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:0.4982649842271297% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.436893em;line-height:1.14;text-align:center;padding:0;color:#000000\"><span class=\"ez-toc-section\" id=\"With_a_Roth_401k_plan_contributions_are_made_with_after-tax_dollars_but_qualified_withdrawals_in_retirement_are_tax-free\"><\/span><span><span style=\"font-weight: 700; color: #215fce\">With a Roth 401(k) plan, contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free.<\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><amp-story-page id=\"f51c9663-c29f-4927-bff7-26288fdef48f\" auto-advance-after=\"7s\"><amp-story-animation layout=\"nodisplay\" trigger=\"visibility\"><script type=\"application\/json\">[{\"selector\":\"#anim-aa2f3995-8b80-48f8-854d-8d6cf45f4791\",\"keyframes\":{\"opacity\":[0,1]},\"delay\":400,\"duration\":2000,\"easing\":\"cubic-bezier(0.4, 0.4, 0.0, 1)\",\"fill\":\"both\"}]<\/script><\/amp-story-animation><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\" style=\"background-color:#fdf0d6\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:0;top:-9.25926%;width:100%;height:118.51852%;opacity:1\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0\" class=\"mask\" id=\"el-58c02589-cc6e-469e-8d35-150145c88999\">\n<div class=\"fill\" style=\"will-change:transform\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><amp-story-grid-layer template=\"vertical\" aspect-ratio=\"412:618\" class=\"grid-layer\"><\/p>\n<div class=\"page-fullbleed-area\">\n<div class=\"page-safe-area\">\n<div style=\"position:absolute;pointer-events:none;left:12.37864%;top:29.77346%;width:75%;height:40.29126%;opacity:1\">\n<div id=\"anim-aa2f3995-8b80-48f8-854d-8d6cf45f4791\" class=\"animation-wrapper\" style=\"width:100%;height:100%;display:block;position:absolute;top:0;left:0;--initial-opacity:0;--initial-transform:none\">\n<div style=\"pointer-events:initial;width:100%;height:100%;display:block;position:absolute;top:0;left:0;z-index:0;border-radius:0.6472491909385114% 0.6472491909385114% 0.6472491909385114% 0.6472491909385114% \/ 0.8032128514056224% 0.8032128514056224% 0.8032128514056224% 0.8032128514056224%\" id=\"el-c372fa26-5980-475e-9677-ec83f25382e8\">\n<h2 class=\"fill text-wrapper\" style=\"white-space:pre-line;overflow-wrap:break-word;word-break:break-word;margin:1.1228155339805825% 0;font-family:&quot;Merriweather&quot;,serif;font-size:0.436893em;line-height:1;text-align:center;padding:0;color:#000000\"><span class=\"ez-toc-section\" id=\"The_benefits_of_a_401k_plan_include_tax-deferred_growth_employer_matching_contributions_and_the_ability_to_save_for_retirement_in_a_disciplined_and_structured_manner\"><\/span><span><span style=\"font-weight: 700; color: #134f3c\">The benefits of a 401(k) plan include tax-deferred growth, employer matching contributions, and the ability to save for retirement in a disciplined and structured manner.<\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><\/amp-story-grid-layer><\/amp-story-page><\/amp-story><\/body><\/html><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A 401(k) plan is a type of retirement savings plan sponsored by employers for their employees. The plan also requires careful management and can involve investment risk, fees, and other penalties.<\/p>\n","protected":false},"author":152,"featured_media":0,"template":"","meta":{"web_stories_publisher_logo":59216,"web_stories_poster":[],"web_stories_products":[],"footnotes":""},"web_story_category":[],"web_story_tag":[20167,20168,20170,20173,20175,20183,20174,20179,20176,20177,20172,20178,20171,20181,20182,20084,20180,20169],"class_list":["post-68459","web-story","type-web-story","status-publish","hentry"],"story_data":{"version":46,"pages":[{"elements":[{"opacity":100,"flip":{"vertical":false,"horizontal":false},"rotationAngle":0,"lockAspectRatio":true,"x":1,"y":1,"width":1,"height":1,"mask":{"type":"rectangle"},"isBackground":true,"isDefaultBackground":true,"type":"shape","id":"d07dcf2b-1df9-41df-8197-580777224642"},{"opacity":100,"flip":{"vertical":false,"horizontal":false},"rotationAngle":0,"lockAspectRatio":false,"scale":100,"focalX":50,"focalY":50,"resource":{"type":"image","mimeType":"image\/jpeg","width":360,"height":539,"sizes":[],"isPlaceholder":false,"isExternal":true,"needsProxy":true,"src":"https:\/\/img.freepik.com\/free-photo\/close-up-retirement-glass-container-full-coins-white-background_23-2147919306.jpg?w=360&t=st=1677487598~exp=1677488198~hmac=2acc2765bb95fec808a212c4f9a6f9f1c9c1ed14c40b2acff0353edfe46be07d","id":"d520d812-17a0-47ca-b730-f41e5e098c55","alt":"close-up-retirement-glass-container-full-coins-white-background_23-2147919306.jpg","baseColor":"#e6e4e7"},"type":"image","x":-37,"y":13,"width":487,"height":730,"mask":{"type":"rectangle","showInLibrary":true,"name":"Rectangle","path":"M 0,0 1,0 1,1 0,1 0,0 Z","ratio":1,"supportsBorder":true},"id":"44f8798d-26f2-49bf-adb3-83d8d7533f38"},{"opacity":100,"flip":{"vertical":false,"horizontal":false},"rotationAngle":0,"lockAspectRatio":true,"backgroundTextMode":"NONE","font":{"family":"Merriweather","fallbacks":["serif"],"weights":[300,400,700,900],"styles":["italic","regular"],"variants":[[0,300],[1,300],[0,400],[1,400],[0,700],[1,700],[0,900],[1,900]],"service":"fonts.google.com","metrics":{"upm":1000,"asc":984,"des":-273,"tAsc":984,"tDes":-273,"tLGap":0,"wAsc":1065,"wDes":273,"xH":555,"capH":743,"yMin":-272,"yMax":1055,"hAsc":984,"hDes":-273,"lGap":0}},"fontSize":30,"backgroundColor":{"color":{"r":196,"g":196,"b":196}},"lineHeight":1.2,"textAlign":"center","padding":{"locked":true,"hasHiddenPadding":false,"horizontal":0,"vertical":0},"type":"text","content":"<span style=\"font-weight: 700; color: #a4133c\">What Is 401(k) Plan and What Are Its Benefits<\/span>","borderRadius":{"locked":true,"topLeft":2,"topRight":2,"bottomRight":2,"bottomLeft":2},"x":51,"y":43,"width":309,"height":109,"id":"ad0cf650-38d9-42da-8b50-4622234550c9"}],"backgroundColor":{"color":{"r":229,"g":228,"b":234}},"type":"page","id":"f3d273d0-949b-4676-bf09-91eef22cc64c"},{"elements":[{"x":1,"y":1,"width":1,"height":1,"opacity":100,"flip":{"vertical":false,"horizontal":false},"rotationAngle":0,"lockAspectRatio":true,"mask":{"type":"rectangle"},"isBackground":true,"type":"shape","id":"d18addb3-0e83-4611-950c-97a4057636ef","isDefaultBackground":true,"basedOn":"73511558-2879-461f-a983-d872d0436048"},{"x":49,"y":174,"width":315,"height":270,"opacity":100,"flip":{"vertical":false,"horizontal":false},"rotationAngle":0,"lockAspectRatio":true,"backgroundTextMode":"NONE","font":{"family":"Merriweather","fallbacks":["serif"],"weights":[300,400,700,900],"styles":["italic","regular"],"variants":[[0,300],[1,300],[0,400],[1,400],[0,700],[1,700],[0,900],[1,900]],"service":"fonts.google.com","metrics":{"upm":1000,"asc":984,"des":-273,"tAsc":984,"tDes":-273,"tLGap":0,"wAsc":1065,"wDes":273,"xH":555,"capH":743,"yMin":-272,"yMax":1055,"hAsc":984,"hDes":-273,"lGap":0}},"backgroundColor":{"color":{"r":196,"g":196,"b":196}},"lineHeight":1,"textAlign":"center","type":"text","basedOn":"65b49662-1ad8-4478-8fe9-98a7b60b2ea4","id":"7ea61911-b730-45a9-b503-6897ff103bd5","content":"<span style=\"font-weight: 700; color: #a4133c\">A 401(k) plan is a type of retirement savings plan sponsored by employers for their employees. 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