How to Invest in 401K
A 401(k) plan is a retirement program sponsored by your employer that lets you make contributions to your retirement savings. There are tax benefits to using a 401(k) to prepare for retirement, because your contributions are made before they are taxed. Any income your contributions earn is also tax-deferred. Invest in a 401(k) by exploring the options available through your employer, determining where to invest, and assessing how much you’ll need to save for a comfortable retirement. As a rule of thumb, aim to save 10% of your annual income for your retirement in a 401(k) account.