How to Set Up Your First 401(k)

How to Set Up Your First 401(k)
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Young woman sets up 401(k) savings plan online.
New employees have many expenses competing for their limited paychecks. Student loan bills, food, rent and utilities can easily consume a starting salary. But 20-somethings have one very important thing going for them. Young people are in the best position of their lives to start saving for retirement.
Why Open a 401(k) Account?
Contributing to a 401(k) plan allows you to defer paying income tax on your retirement savings. You won't have to pay tax on your 401(k) balance until the money is withdrawn from the account. Participating in a 401(k) account might also qualify you for employer contributions that will help you to build wealth faster. If you start saving in a 401(k) early in your career, the money will have decades to compound before retirement.

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