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How 401(k) savers can avoid a nasty surprise when it’s time to retire

Catherine Golladay
How 401(k) savers can avoid a nasty surprise when it’s time to retire

Since its debut nearly 40 years ago, the 401(k) has emerged as one of the premier tools to save for retirement in America. One of the main reasons 401(k) accounts are so popular and effective is their tax treatment. A traditional 401(k) is funded from your pretax paycheck, so the money you put into your plan, and any potential gains on your investments, are not taxed until you ultimately withdraw the money.