WHAT IS THE ADVANTAGE OF A 401(k) PLAN?

The main advantage is you do not pay current income taxes on the assets in this Plan because you do not receive the money until later. This deferral applies not only to taxes paid to the Federal government but to New York State. In addition, any investment return on your contributions accumulate on a tax deferred basis. Your money is held in a tax qualified trust, free from the claims of your creditors, except under certain circumstances permitted by law.