401k - What is a 401k investment plan
Why use a 401K plan and not just a cash savings account? The reason to better use a 401K and not just a cash savings account is that 401k accounts offer better benefits regarding your income taxation. 401K plan makes paying taxes easy by protecting your income until later. The money you put into your 401(k) is not taxed right away. For example if you contribute 1 year to your 401K account you will actually pay less income taxes for this exact year. A 401K plan is actually a good investment plan managed by professional asset managers.