A 401(a) is a retirement savings plan offered by many public and private employers. Employees can choose to have a certain percentage of their paycheck deducted and deposited into their 401(a) account. The money in the account can then be used to finance the employee’s retirement.
There are some key features of 401(a) accounts that make them attractive to employees. For one, the money that is deposited into a 401(a) account is usually tax-deferred. This means that employees can save more money for retirement because they will not have to pay taxes on the money until they withdraw it from their account.
Another key feature of 401(a) accounts is that they often offer matching contributions from employers. This means that if an employee contributes a certain amount of money to their 401(a) account, their employer will also contribute an equal amount. This can help employees boost their retirement savings significantly.
If you are considering saving for retirement with a 401(a) account, be sure to research the specific features and benefits offered by your employer. 401(a) accounts can be a great way to save for retirement, but they vary in terms of how much you can contribute and how the money can be used.