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401 Retirement Plans, IRAs, and other tax deferred savingsA 401 retirement plan is a retirement savings plan that is funded by employee contributions and often matching contributions from the employer. The major attraction of these individual retirement accounts is that the contributions are taken from pre-tax salary, and the funds grow tax-free until withdrawn as retirement income. Also, to some extent the plans are self-directed, and they are portable, you can "roll over" a 401 into another retirement plan if you leave your current employer.
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