What is a 401(k)?

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Question: What is a 401(k)?

Answer: A 401(k) is a retirement savings plan offered by many employers in the United States. It allows employees to contribute a portion of their pre-tax income to a retirement account, which can then be invested in a variety of options, such as stocks, bonds, and mutual funds. Employers may also offer matching contributions, which can help employees save even more for retirement. 401(k) plans have become an important tool for retirement savings in the United States, with many employers offering them as a benefit to their employees.

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