Question

Money deposited into a 401k is not taxed, however it is taxed years later when it is withdrawn for retirement. so if the money is taxed either way, why do many experts recommend tax-deferred savings such as 401k?

Answer 1

For the answer to the question above, the reason why many experts recommend tax-deferred savings such as 401k is because it gives a special tax break to employees who are saving primarily for retirement. It is also recommended to fund your 401k up to the match.