![There are three major advantages to retirement plans Thumbnail](https://static.twentyoverten.com/5993124fcc19770e9503003d/A_pQlOUaqre/22.png)
There are three major advantages to retirement plans
What Are the Advantages?
- Automatic savings: Pay yourself first.
- Free money: Employer contributions
- Huge tax advantages:
Pre-Tax Contributions | After-Tax “Roth” Contributions |
Pay no tax when you earn it | Pay tax when you earn it |
Pay no tax while it grows | Pay no tax while it grows |
Pay (lower) tax when you take it out | Pay no tax when you take it out |