Kiplinger

5 Ways Your 401(k) Is a Tax Trap (and What to Do about It)

Just about every financial expert I know advises savers to contribute to their company's 401(k) plan -- at least enough to receive the employer's matching contribution.

I can't argue any differently.

That company match is free money -- a bonus from the boss -- so why not cash in if you can?

And, of course, the tax breaks are another bonus. Because the money comes out of your paycheck before taxes are calculated and compounds every year without a bill from Uncle Sam, investing in a defined contribution plan is bound to make April 15 more tolerable.

Not a bad deal, right?

Until you're ready to retire, that is.

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