A 401(k) is an employer-sponsored retirement savings account in the US that lets employees invest pre-tax income, lowering their taxable income today. Many employers match a portion of contributions — effectively free money. Funds grow tax-deferred until withdrawal in retirement. A Roth 401(k) variant uses after-tax contributions for tax-free withdrawals later.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.