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A 401(k) is a retirement savings plan offered by many employers in the United States. It allows employees to save and invest a portion of their paycheck before taxes are taken out. Many employers also match a percentage of employee contributions, essentially providing free money for retirement. While a 401(k) can be a good retirement plan, its effectiveness depends on factors such as investment choices, fees, and the employee's contribution level. Beginners can learn how a 401(k) works through various guides.

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