jterrell
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absolutely, pre-tax deduction so it is not taxed.What I like about the 401(k). You can actually take money out of your paycheck and actually pay less taxes take home more money and actually save money. At the same time. Do you shoe is when you’re old enough to collect it you get slammed with taxes then. But I want if you live in Florida and there’s no payroll taxes if you could have the 401(k) clean without taxes. Do I explain that right
always contribute at least what your employer matches and hopefully up to yearly max.
and yea it is a mess if you change jobs and gotta transfer it quickly or whatever.
if you get laid off and gotta withdraw it they tax and penalize you like you stole it.
but it is a heck of a lot better plan than surviving off of social security alone.