New Research Reveals 401(k) Savers Have 29% Higher Retirement Funds Than Nonparticipants

And that's not all. You can also deduct the amount you contribute from your taxable income. For example, if your weekly pretax paycheck is $1,500 and you contribute 15% of it ($225) to your 401(k), your employer will calculate your tax obligation on $1,275. You don’t have to report that $225 on your tax return . If you stay consistent week after week, that works out to $11,700 ($225 x 52) of your annual income that's shielded from taxes for years. And the interest your account earns isn’t taxed, either.A tr ...