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|