Participating in an employer-sponsored 401(k)
or 403(b) tax-deferred retirement plan is a smart way to build savings
for retirement. You contribute part of your pay to a plan account set
up just for you. You don’t pay taxes on the amount you contribute or
on the investment earnings in your plan account until you withdraw funds
from the plan, usually at retirement. If your employer matches any of
your contributions, this is an added benefit.