Employer contributions and earnings on your 401k account grow tax-deferred.

Current gross income is reduced by the amount you contribute.

Automatic payroll deductions make saving for retirement easy. You control your own account.

If you leave your current employer, you have the option of rolling your 401k money over into an IRA (Individual Retirement Account) or a new employer’s plan or withdrawing the money.

You can invest in professionally managed funds at no minimums. Your money is invested in funds that you choose or your employer might make the investment choices for you.

You may be able to borrow from your account. Many plans have loan features that let you withdraw money (without taxes or penalties) as a "loan to yourself." You pay the loan back automatically through payroll deduction, and the loan interest goes into your own account, too.

Employer may contribute matching funds on a portion of your savings. If so, you reap instant earnings on your investment.

You have the option to contribute the amount you feel you can afford to your 401K plan, up to the maximum allowed by the government.