If you’re like many Americans, your 401(k) plan may be your largest retirement asset. A 401(k) plan is a tax-advantaged tool designed to encourage long-term savings. As long as the funds stay in the account, the growth isn’t taxed. This allows your funds to compound more quickly and can help you accumulate a substantial balance in a shorter amount of time.
If you’re like many Americans, your 401(k) may be your single largest retirement asset, and it could be your most important one, too. After all, your retirement may last decades, so it’s vital to ensure your money does as well. What you decide to do with your 401(k) after you retire can be a major factor in how long those funds last.