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 |
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