By Lisa Gerstner
From Kiplinger’s Personal Finance
Stashing enough in an employer-sponsored retirement plan to get the full match is a no-brainer—it’s free money toward your retirement. Employers often match contributions up to about 3–5 percent of an employee’s salary.
However, figuring out how much to contribute to a 401(k) beyond the match and how to divvy up funds within the account can be tricky.
The tax treatment of contributions and withdrawals is a top factor to consider. Most large employers’ 401(k) plans provide a Roth savings option along with traditional, pretax contributions. Roth accounts are often considered especially valuable for young investors because although a Roth offers no up-front tax break, withdrawals are tax-free in retirement, when investors may be in a higher tax bracket than in their early career….
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