When I got my first ~adult~ job, my parents told me to make sure I enroll in a 401(k) plan. I didn't really know what it meant, and my parents — who never had 401(k)s of their own — could only explain that it was a retirement account.
While they were correct, there's actually a lot more to it. And even though it might not be the most *exciting* topic, understanding how 401(k) plans work (especially when you're young!) could help you bulk up your retirement fund over the course of your life.
Here are some very important things you should know about 401(k) plans:
1.A 401(k) is an account offered through your employer, but you can still set one up if you're self-employed.
2.You won't pay taxes on your money until you withdraw it.
3.And, there's actually a really good reason behind the tax deferral.